Dogecoins price slips back after a fakeout, whats next for investors

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  • Dogecoin price describes a falling wedge pattern and has been doing so since its all-time high in May.
  • This pattern formed as DOGE crashed 85% from a peak of $0.740 in May.
  • The crash pushed DOGE inside its bullish setup, where it awaits a breakout.
  • This technical formation forecasts a 68% upswing to $0.241, determined by adding the distance between the first swing high and swing low to the breakout point.
  • Although DOGE breached the wedges upper trend line on 25 April, it failed to sustain the momentum, leading to a reversal.
  • Since this fakeout, the Dogecoin price has had many opportunities to break through but has failed every time.
  • The recent crash in Bitcoin price affected DOGE but in slightly less capacity relative to other altcoins.
  • Dogecoins price crashed 20% and came close to retesting the lower trend line of the falling wedge.
  • Despite this downtrend, the recovery has been amazing; so far, the dog-themed crypto has rallied 15% and shows no signs of stopping.
  • Assuming the crash continues, DOGE could retest the immediate support level at $0.087.
  • Here, a bounce in buying pressure or prior to this level could trigger an uptrend that breaks out of the falling wedge.
  • The resulting rally will propel the Dogecoin price by 68% to its forecasted target of $0.241.
  • While the technicals are on the fence and show no clear directional bias, the social volume puts things into perspective.
  • This metric tracks the mentions of DOGE on the internet and can be used to time the tops and bottoms of the rally if used correctly.
  • Since 26 April, the social volume has dropped from 9,122 to 1,589, denoting an 82% slump.
  • This trend suggests that investors are not interested in DOGE and are likely pulling their capital out, which paints a bearish picture.
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