Dogecoin (DOGE) tries to find support after breakout

Dogecoin (DOGE

) broke out above the horizontal support area at $0.265 on August 11. It is currently in the process of confirming it as support. Sponsored Sponsored

It is likely that DOGE

is in a corrective structure. Reaching the next higher level would be likely before a potential long-term decline.

Dogecoin regains horizontal level

DOGE initiated an upward movement on June 22 and formed a higher low on July 20. It managed to break above the horizontal resistance area at $0.265 on August 11 and peaked at $0.352 on August 16.

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Since then, it has been falling, potentially returning to confirm the $0.265 area as support. This area also coincides with the support line of the supertrend indicator (green line).

However, both the MACD and RSI

are falling. The latter is close to falling below 50. Dogecoin (DOGE) tries to find support after breakoutWykres dzienny DOGEDOGE chart courtesy of Tradingview

The short-term six-hour chart supports the possibility that Dogecoin

will fall towards the $0.265 area.

Altcoin

is potentially following a rising support line (dashed) that coincides with the previously outlined area. In addition, there is another convergence of support levels formed by the 0.5 Fib retracement support area and the descending parallel channel support line.

Finally, both MACD and RSI are bearish, indicating that more declines can be expected in the future.

Dogecoin (DOGE) tries to find support after breakoutWsparcie na wykresie Dogecoin DOGE chart via Tradingview

Number of waves

Cryptocurrencytrader @TheTradingHubb outlined a chart <a href=”https://beincrypto.pl/learn/

how-to-buy-dogecoin/” target=”_blank” rel=”noopener”>Dogecoin, stating that the token is completing a long-term wave B before another sharp decline. Dogecoin (DOGE) tries to find support after breakoutDogecoin (DOGE) tries to find support after breakoutSource: Twitter

The downward movement after reaching an all-time high on May 8 does indeed resemble a leading diagonal (black). Therefore, it is very likely that this is part of wave A of the A-B-C corrective structure (orange). In this case, the subsequent breakout from the wedge is part of wave B.

It is interesting to note that wave B has not yet even reached the resistance level at the 0.382 Fib retracement. This is unusual because corrective B waves are expected to at least reach this level.

Thus, it is likely that the bounce from the mentioned support area will be followed by another upward move.

Dogecoin (DOGE) tries to find support after breakoutLiczba fal DOGEDOGE chart courtesy of Tradingview

For the latest analysis of Bitcoin (BTC) by BeInCrypto, click here.

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