Dogecoin to shakeout weak hands before DOGE spikes to $0.33

Dogecoin price is under pressure from a combination of fundamental and technical sources.
Continued movement further south, likely until after the Christmas holiday.
Major Ichimoku gaps increase volatility for upside potential.

Dogecoin price action makes another push that hints at a massive breakdown before the Christmas holiday. However, downside momentum could still be muted and reverse course at any moment.

Dogecoin price slide lower and nears new eight-month lows

Dogecoin price continues to sit just above a massive capitulation zone. The capitulation zone is represented in the red shaded price range between $0.08 and $0.18. Since the flash crash on December 5, Dogecoin has struggled to make any meaningful drive higher with all pumps promptly sold off.

However, instead of a massive collapse in price, buyers appear to have stepped in and created a new high volume node in the $0.165 to $0.175 value areas. This may be an attempt to form a new floor before Dogecoin makes another push higher.

While the downside price action over the past two weeks has been a source of frustration for speculators, the overall internal bullish price structure within the $0.005/3-box reversal Point and Figure chart remains solid and valid. The hypothetical long entry has now shifted to a buy stop at $0.185, the stop loss at $0.1650, and the profit target remains at $0.335.

DOGE/USDT $0.005/3-box Reversal Point and Figure Chart

The hypothetical long entry is based on a 3-box reversal off the current column of Os, which is the first reversal column after Dogecoin price converted from a bear market into a bull market. In Point and Figure analysis, the pullback is viewed as a sign of strength, not weakness.

The long entry idea is invalidated if Dogecoin price moves below $0.14.

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