Dogecoin price is right above a crucial support level
- Dogecoin price provides a strong Fibonacci cluster at the current $0.05 level.
- Dogecoin price revisits historical trend line from the 2021 bull run.
- Invalidation of the entire bearish downtrend can be a breach above $0.085.
UPDATE: Dogecoin price has found some interim support above $0.05, the key round level where it set its floor between February and April 2021 before its last parabolic rally to the all-time highs above $0.70 in May 2021. Since then, a relentless downtrend was established and, over the past week, it accelerated to the aforementioned – and very relevant – support. The whole cryptocurrency market seems to be battling to stay above psychological levels over the past couple of days, with Bitcoin just above $20,000 and Ethereum right above $1,000. It is easy to see the huge relevance of bulls defending these levels, as a potential capitulation could mean another cascade of stops triggered with still lots of room to go below. DOGE bulls are banking on the confluence of Fibonacci retracement levels analyzed in this article.
Dogecoin: -92% from the Musk SNL peak.$DOGE pic.twitter.com/P1J9Zn55yE
— Charlie Bilello (@charliebilello) June 12, 2022
Dogecoin price should be on everyone’s watchlist as the technicals indicate a significant level in play, which warrants the idea for a highly volatile market in the coming weeks.
Dogecoin price is one to watch
Dogecoin price first anomalous signal is the recent breach of a historical trend line, which has been highly anticipated for months here at FXStreet. It seems the stars are aligning in favor of a bullish rally, but it is better to play the market safe than jump in too early. A devastating collapse to $0.02 could occur if the bulls fail to provide support.
DOGE/USDT 1-Week Chart
Dogecoin price shows interesting technicals as the crypto market bleeds into oblivion. A Fibonacci projection tool from the first impulse down into the X wave rally that ended in April at $0.18 has a 61.8% Fib level at $0.05. A Fibonacci retracement tool surrounding the all-time lows and all-time highs has a 38.2 level% at $0.05 as well. A Fibonacci cluster is when two Fibonacci methods line up in the same vicinity, signaling a strong level of interest.
DOGE/USDT 2-Week Chart
Invalidation of the bearish downtrend is a breach above $0.085. The entire bearish downtrend could be deemed over if the bulls can accomplish said price action. A rally towards the all-time highs at $0.70 would result in an 1125% increase from the current Dogecoin 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.
