) 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.
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).
are falling. The latter is close to falling below 50. DOGE chart courtesy of Tradingview
The short-term six-hour chart supports the possibility that Dogecoin
will fall towards the $0.265 area.
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.
Number of waves
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.
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