Bullish or bearish? Dogecoin price is primed for a spike in volatility
- DOGE price displays subtle cues of bearish exhaustion.
- Dogecoin price has several extended impulse waves.
- Invalidation of the bullish thesis is a close below $0.069
Dogecoin price is forming unpredictable behavior. A price spike back into $0.10 now has a high probability.
Dogecoin price is ready to move
Dogecoin price continues to display the need for balance within the steep declining price action. The bears have been able to short the digital asset with extending impulse waves since May 12th. The current consolidation is coiling unpredictably. This could be early evidence of bearish exhaustion. Intraday traders should look for A truncated five-wave pattern before the next bullish rally occurs.
Dogecoin price could balance out the extended dip in price action by establishing a countertrend rally as high as $0.13. A more conventional target is the $0.10 zone to fill the bearish gap that occurred on May 11th. The Relative Strength Index provides some short-term bullish confluence as the DOGE price trades at $0.08 while maintaining support on the buyers' 40 levels.
DOGE/USDT 4-Hour chart
Invalidation of the bullish scenario is a breach and close below $0.069.
If the bears can produce price action at the invalidation level, they could continue to rally towards $0.05, resulting in a 40% decrease from the current price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
