Jonathan Morgan
Independent Analyst
- Dogecoin price drops nearly -15%
- Modest recovery during the Tuesday trading session limits losses to -11.4% from the Monday open.
- Bulls fail to show an interest in supporting price, bears to drive Dogecoin towards $0.185 and $0.125
Dogecoin price action points to a continuation of the downside pressure it has experienced over the last month. Little supportive price action exists as bulls continue to disappear and fade away.
Dogecoin price continues lower as bears target sub $0.20 price levels
Dogecoin price continues to drift lower as bears maintain a relentless assault against the bulls. Bears have successfully pushed Dogecoin below the $0.30 levels at the beginning of September and now target value areas below the $0.20 levels.
The first target for bears will be $0.185, which will likely act as some short-term support as the 61.8% Fibonacci expansion and a high volume node share that value area. Below $0.185 is the 61.8% Fibonacci retracement and 100% Fibonacci expansion between $0.106 and $0.125; however, this value area may not hold as support for Dogecoin price because the Volume Profile is thin.
The ultimate target low in a broad corrective move for Dogecoin price is the triple support zone at $0.058 - $0.066. The 2021 Volume Point-Of-Control, 161.8% Fibonacci expansion and 50% Fibonacci retracement exist in the $0.058 and $0.066 value areas.
DOGE/USDT Daily Ichimoku Chart
Bulls should note that Dogecoin price is at the precipice of a massive waterfall collapse in value. If the Chikou Span closes below the Cloud around the $0.202 level, that could trigger a massive and swift sell-off. The Chikou Span dropping below the Cloud would fulfill all the conditions necessary for the most bearish Ichimoku setup within the Ichimoku system: the Ideal Bearish Ichimoku Breakout.
To invalidate the current bearish outlook, Dogecoin price will need to return to a close above the $0.32 value area. Doing so would not only terminate any near-term bearish sentiment, but it would generate a probable move to new all-time highs.
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