Dogecoin price hints at one more fall towards $0.07
- DOGE price is losing bearish momentum.
- Dogecoin price has several extended impulse waves.
- Invalidation of the bearish thesis is a close above $0.12.
If the technicals are correct, the Dogecoin price could set a double bottom in the $0.06-$0.07 zone.
Dogecoin price could dip once more before a rally occurs
Dogecoin price displays the need for balance within the price action. The bears have been able to suppress the digital asset with extending impulse waves throughout the downslide. The current consolidation is now distorting proportionally compared to the rest of the consolidations within the trend. This could be a signal of bearish exhaustion. A truncated 5th wave could be in the cards in the coming days.
Dogecoin price could balance out the extended decline by producing a large countertrend rally as high as $0.13. The current price action hints at the need for one more completed impulse wave, which traders should be on the watch for on intraday time frames. The 5th wave could fall into $0.07 or even breach this year's low at $0.0691 before producing a strong bull run to trap overzealous bears.
DOGE/USDT 4-Hour chart
Invalidation of the bearish downtrend is a breach and close above $0.12. If the bulls can produce price action at the invalidation level, the technicals would be deemed incorrect. The bulls could then rally to $0.13, resulting in a 45% increase 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.
