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Dogecoin price readies for a 35% crash as tension between Russia and Ukraine escalate

  • Dogecoin price has set up a triple bottom pattern at $0.127, indicating a trend reversal.
  • A breakout from the declining trend line leading to a retest of $0.163 will constitute a 30% gain.
  • However, a daily candlestick close below $0.127 will create a lower low, invalidating the bullish thesis for DOGE.

Dogecoin price is currently hovering on a critical support level, a breakdown of which could lead to a steep correction, but a bounce could trigger a new uptrend. Therefore, investors need to be cautious as crypto markets have turned volatile due to the ongoing war between Russia and Ukraine.

BTC crashed to $35,000 after news of Russia launching attacks on Ukraine emerged, causing Dogecoin and other altcoins to crumble as well. 

Dogecoin price needs to re-establish directional bias

Dogecoin price tagged the $0.127 support level thrice over the past three months, giving rise to a bottom reversal pattern known as a triple bottom setup. The third tag was supposed to result in a bullish move but failed to do so as a result of the flash crash due to Russia v. Ukraine.

Since DOGE has sliced through the $0.127 support barrier, there is a good chance this downswing will continue as new information continues to unfold. Investors can expect Dogecoin price to crash 35% and fill the fair value gap by retesting the $0.0745 support level.

This barrier is likely where the downside for Dogecoin price is limited and where buyers have a chance to reassemble for a comeback.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

Regardless of the recent news, if DOGE bulls can quickly recover above the $0.127 support level, it could give the bullish outlook a semblance of hope. A daily candlestick close above this hurdle will restart the uptrend and likely propel the meme coin to the immediate weekly resistance barrier at $0.163.

This move would constitute a 30% ascent and is likely where the upside is capped for DOGE bulls. Clearing this hurdle with substantial volume could see Dogecoin price make a run for the $0.194 hurdle, bringing the total gain to 53%.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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