Jonathan Morgan
Independent Analyst
- Dogecoin price has, at the very least, a strong mean reversion setup higher in the near term.
- Point and Figure confirms a bullish entry and compliments the extended levels on the weekly Japanese candlestick chart.
- Limited downside risks present versus potential upside gains.
Dogecoin price has several warning signs on its weekly chart that price action has extended a little too far south too fast. The candlesticks and corresponding oscillators indicate an imminent reversal – likely a broader bullish trend change but, if not, at the very least, a strong pullback.
Dogecoin price set to rally more than 70% if conditions are right
Dogecoin price has been one of the most beat-up altcoins and meme coins in the entire cryptocurrency space. However, in a downtrend exceeding 300 days, some signs point to relief ahead. The most glaring sign of an impending rally is the large gaps between the bodies of the weekly candlesticks and the Tenkan-Sen – gaps between these two levels do not last long and often correct within four to six periods.
DOGE/USDT Weekly Ichimoku Kinko Hyo Chart
Additionally, Dogecoin price has moved to the maximum mean from the Kijun-Sen on the weekly chart, indicating extreme oversold conditions and a likely return beyond the Tenkan-Sen to the Kijun-Sen at $0.23. Dogecoin’s oscillators support a strong rally. The Optex Bands are at historical all-time lows, while the Composite Index displays regular bullish divergence at extreme lows.
A theoretical long entry exists for Dogecoin price on the $0.005/3-box reversal Point and Figure chart. The long setup is a buy stop order at $0.145, a stop loss at $0.125, and a profit target at $0.23. The trade idea represents a 3.4:1 reward for the risk with an implied profit target of over 60% from the entry. However, the profit targets are rarely hit immediately after entry, so a trailing stop of three boxes would help protect any profit made post entry.
DOGE/USDT $0.005/3-box Reversal Point and Figure Chart
The long trade setup is invalidated if Dogecoin price falls to $0.11 before the entry is triggered.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.