- Dogecoin price remains down nearly 80% from its all-time high.
- As Dogecoin enters an extreme bearish Ichimoku condition, a little reprieve is in sight.
- The only relief for bulls is a mean reversion setup within the Ichimoku Kinko Hyo system.
Dogecoin price continues to face significant weakness. A double whammy of low participation due to seasonality and a bearish outlook has leaned heavily on any near-term positive movement for DOGE.
Dogecoin price likely to return to below $0.10 trading conditions
Dogecoin price has completed one of the most sought-after long-term bearish signals within the Ichimoku Kinko Hyo system: the Ideal Bearish Ichimoku Breakout. The rules for this are as follows:
- Future Senkou Span A is below Future Senkou Span B
- If Future Senkou Span A is above Future Senkou Span B, then Future Senkou Span A must be pointing down, and Future Senkou Span B must be flat or pointing up.
- The Tenkan-Sen is below the Kijun-Sen
- The current close is below the Tenkan-Sen and Kijun-Sen.
- The current close is below the Cloud (below Senkou Span A and Senkou Span B).
- The Chikou Span is below the candlesticks and in open space.
- Open space is a condition where the current Chikou Span would not intercept the body of any candlestick over the next five to ten periods.
All of the above conditions are currently true for Dogecoin price. As a result, a solid and sustained downside move is now likely for Dogecoin, with an initial support zone that may not appear until the $0.09 value area. After that, the volume profile becomes thinner, the lower DOGE falls, and the speed of the descent also increases.
The ultimate support for Dogecoin may not appear until the 2021 Volume Point Of Control at $0.05 – but that would represent a clear capitulation move as Dogecoin will have lost over 93% of its value from the all-time high established in May.
DOGE/USDT Daily Ichimoku Chart
The only near-term relief that bulls may find is an incoming mean reversion setup on the weekly chart. The gaps between the bodies of the weekly candlesticks and the Tenkan-Sen continue to widen. A return to test the Tenken-Sen at $0.24 is increasingly more probable the longer that Dogecoin spends away from that level.
To deny any further bearish bias, Dogecoin would need to have a weekly close at or above the $0.25 value area.
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.
Recommended Content
Editors’ Picks
Why LUNA traders do not have to be in the market all the time
Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.
SEC vs. Ripple case, two key decisions awaited by XRP holders
XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple.
MATIC price explodes as Polygon achieves Carbon neutrality
MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and
Things have suddenly changed for the Shiba Inu price, is the bottom in?
Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart.
Bitcoin: Everything you need to know about BTC 200-week MA
Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.