- Dogecoin price made new 2022 lows.
- Downtrend officially exceeds one year in length.
- Strong corrective move incoming.
Dogecoin price action tanked on Monday, following the rest of the cryptocurrency market's massive collapse. DOGE closed Monday with an 18% loss, just slightly above the daily low that constituted 20% decline overall. But a change in direction may be coming soon.
Dogecoin price bounces off of new 2022 and YTD lows
Dogecoin price hit a major milestone in time and price. DOGE is now in a downtrend that exceeds 365 days. Today's new YTD and 2022 low represents an 87% loss from the all-time high made on May 8, 2021. However, the extremity of the current down drive has created an aggressive long setup for DOGE.
A hypothetical long entry for Dogecoin price now exists on its $0.005/3-box reversal Point and Figure chart. The setup is a buy stop order at $0.12, a stop loss at $0.105, and a profit target at $0.22. In addition, a trailing stop of two to three-box is an option and would help protect against any implied profit made post entry.
The long setup for Dogecoin price is based on a Spike Pattern. The Spike Pattern in Point and Figure is a column with fifteen or more Xs or Os. It is considered a move that has hit an extreme and is due for a strong corrective move that can often convert into a broader trend change.
The projected profit target is below the dominant bear market angle (red diagonal line). It is also the 50% Fibonacci retracement on the weekly Ichimoku chart. The hypothetical long setup represents a 6:1 reward for the risk.
$0.005/3-box Reversal Point and Figure Chart
There is no invalidation point on a Spike Pattern because the entry is always on the 3-box reversal. If the current O-column moves lower, then the entry and stop loss for Dogecoin price moves in tandem with the new low. The profit target remains the same.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.