Why Dogecoin price may be the best knife to catch in July
- Doge Price falls to $.06 in freefall fashion during the second trading week of July.
- Fibonacci Projection Tools suggest $0.06 and $0.05 as supportive solid zones.
- The safest invalidation of the bearish trend is a breach above $0.078. Riskier knife catchers should be on the lookout for early buy signals near the current price levels while keeping a bullish invalidation below $0.049.
Dogecoin price falls as expected into the $0.06 barrier. A further decline could occur to $.05, but the technicals suggest strong support levels lie in both regions. In layman's terms, buying a dip could be highly risky but equally rewarding.
Dogecoin price looks enticing.
Dogecoin price falls in freefall fashion to start the second trading week of July. It was mentioned in last week's bearish thesis to expect a plummet if the bulls could not retest the $0.0738 swing high formed on July 7. On July 12, the bears pushed the Doge price into the first significant Fibonacci level at $0.06. (The Fibonacci projection tool uses June's monthly high at $0.078, the June 29 swing low at $0.0669, and projects into the July seven swing high at $0.073). A 100 % Fibonacci level is at the current $0.06 level, while a 1.618 Fib level targets $.05.
From a macro perspective, Dogecoin price remains one of the best cryptocurrencies to invest in. However, defining a market bottom on lower time frames is the hardest endeavor every investor encounters throughout their career. Please make no mistake, like previous outlooks, this thesis will remain bearish to ensure safety for our readers.
DOGE/USDT 4-Hour Chart
Alternatively, the DOGE price could invalidate the thesis and shock the crypto market by making a run towards $0.19. Notorious blockchain auditor @WhaleStats reported a massive uptick in accumulation of the popular dog coin on July 11. The whale’s interest in Doge confounds the possibility that a market bottom is near.
Savvy intraday traders who can leverage and deleverage on the fly should keep DOGE as a top currency within the bunch in hopes of catching an early-entry opportunity.
Look for bullish impulsive signals accompanied by a clear uptick in buyers' volume around the current price levels and near the $0.05 region as well. Invalidation of the risky knife-catching opportunity is a breach below the swing low at $0.049.
Still, the Safest Invalidation for the bearish trend remains $0.078. A breach of this level should confirm mid-term targets in the $0.19 region resulting in a 200% 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.
