Dogecoin price twitter induced rally could reverse if the technicals are correct
- Dogecoin price is still coiling within a triangle pattern
- DOGE price failed to make a new swing high above wave C
- Invalidation of the bearish scenario is a close above $0.2148
Dogecoin price is experiencing a strong sell-off following yesterday's impressive 37% rally. If the technicals are correct, the DOGE price could sweep the lows at $0.1240 and head to $0.1175.
Dogecoin price could sweep yesterday's lows
Dogecoin price sell-off looks abnormally steep. It has been mentioned in earlier forecasts that traders should expect erratic behavior from the DOGE price action since the popular meme coin is believed to be coiling within a consolidative triangle. Yesterday's failure to establish a new high above wave C at $0.1780 gives more confluence to the coiling triangle's validity.
Dogecoin price could take out all liquidity under yesterday's low at $0.1240. The steep decline from the bears on the 4-hour chart is further confidence for a wave D target to land somewhere in the $0.1175 region.
DOGE/USDT 4-Hour Chart
Invalidation of the bearish idea remains the same. Dogecoin price must establish a new pivot high above wave A at $0.2148. Only then can the DOGE triangle be considered invalid. Triangles are market makers' favorite pattern because they tap liquidity on both sides and eventually lead to whipsaws. Avoid trading Dogecoin for now until wave D is finished.
If $0.2148 is invalidated, an actual bull run could occur towards $0.3400, resulting in a 140% increase from the current DOGE 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.
