- Dogecoin price continues to slide steadily south.
- A total absence of any technical support until the $0.09 price range.
- Time cycles are the only analysis indicating bullish reversal could occur.
Dogecoin price is currently down more than 13% from the March 1, 2022 high of $0.139 and 44% down from the 2022 high of $0.215. Buying pressure remains vacant as sellers slowly bleed DOGE lower and lower. However, its falling wedge structure remains intact, and time cycles indicate a change in direction could be imminent.
Dogecoin price to fill Volume Profile gap by returning to $0.09 before initiating any new uptrend
Dogecoin price has spent over 300 days in a downtrend. After completing a time and price equilibrium cycle on March 1, 2022, DOGE continues to slide lower. The slide may continue until the Gann Season date of March 21. March 21 is at the extreme end of the time cycles when traders could expect to see a bullish reversal for Dogecoin.
The recent bearish pressure has pushed Dogecoin price below the critical $0.12 level, the final high volume node, until the Volume Profile is at its thinnest. The next high-volume node doesn’t appear until the $0.08 - $0.09 value area. The expected behavior that price exhibits when it moves into an empty Volume Profile is fast. Price action gets sucked in, like a vacuum, from one high-volume node to the next. This means a flash-crash anywhere from $0.12, and lower could trigger until price hits the $0.09 level.
However, some price extremes could point to a higher mean reversion. For example, Dogecoin price now has large gaps between the weekly candlestick bodies and the weekly Tenkan-Sen.
DOGE/USDT Daily Ichimoku Kinko Hyo Chart
Additionally, DOGE has moved into a range away from the Kijun-Sen near its max-mean – a level where disequilibrium is at its greatest. In a bullish reversal, the projected resistance zone is the weekly Kijun-Sen at $0.22.