Dogecoin price is prepping for knife catch scenario, targets as low as $0.01

DOGE price is selling off under low volume.
Dogecoin price is inching closer to a historical ascending channel.
Despite the bearish short-term outlook, the longer-term bias could remain bullish if DOGE manages to hold above 0.0056.

Dogecoin price has space to fall. Further, investors should keep the macro invalidation point in mind from here on out.

The Dogecoin price is a falling knife

Dogecoin price is undergoing a drastic sell-off as the Dogecoin price has swept a year of liquidity in just one week. The DOGE price fell below the Arill 2021 bullish engulfing candle, which likely shook many long-term investors out of their sleep. DOGE price is currently 30% below this week’s opening price, trading at $0.0853.

Dogecoin price could likely fall into the historical trend line in the coming weeks. The first target to see a reaction could be the $0.05 level; however, the DOGE price could fall to the other side of the channel at $0.01 and still maintain a bullish macro outlook with longterm targets well above $1.00. Thus investors must consider a dollar-cost average approach as catching the Doge knife requires up to 80% cushion from the current DOGE price. It is worth noting that the Dogecoin price is selling off under low volume, which adds further confluence that the correction will end eventually, and another bull run will someday occur.

DOGE/USDT 1-Week Chart

The invalidation of the bullish count lies at the first impulsive wave, which commenced the legendary DOGE bull run at $0.0056. Under no circumstances should the bears be able to breach this level. If this bearish scenario were to occur, the entire uptrend for the DOGE price would be void. The bears could confidently sweep all-time lows resulting in a 100% decrease from the current Dogecoin price.

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