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Tuesday, September 28, 2021

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Here’s what the best Dogecoin case outcome will look like




Disclaimer: The findings of the following analysis are the sole opinions of the author and should not be taken as investment advice.

Dogecoin has looked bearish since the market sell-off on September 7. The emergence of a descending channel accurately charted DOGE’s trajectory as the alt revised the lows last seen in early August. The outlook narrowed further after the price fell below its daily 200-SMA (green) for the first time in nearly 2 months.

While the market was certainly devoid of bullish momentum, the shorter time frame noted a bullish build-up after some indicators tried to assert themselves above the bullish control areas.

If this trend continues in the coming days, a price hike can be expected. At the time of this writing, DOGE was trading at $ 0.241, a 1.4% increase in the last 24 hours.

Dogecoin 4-hour chart

Source: DOGE / USD, TradingView

The last eight days have seen DOGE slowly lose value within a descending channel. Lower market lows were observed at $ 0.233 and $ 0.228, while the lower highs were broken at $ 0.263 and $ 0.254. After recovering from the lower trend line, the price can be expected to form a new high above 50% of the Fibonacci retracement level.




From there, the market would be open to a northbound breakout. However, some conditions must first be met. To start with, DOGE should close above the 78.6% Fibonacci level on strong volumes. Second, some of the DOGE indicators need to progress further in the charts.

Failure to break down the 50% Fibonacci level would likely result in a continuation within the pattern. From there, a new low of $ 0.225 can be expected.

Reasoning

Even though DOGE has tested the upper trend line on a few occasions, the RSI has failed to decisively rise above 50. This should change over the next few days to maximize the chances of a northbound breakout.

Meanwhile, the MACD has been recovering from multi-month lows, but no clear uptrend emerged. Interestingly, the Awesome Oscillator formed three lower peaks below the midline, a setup that is generally followed by an increase in upward momentum.

conclusion

DOGE had a long shot of jumping above its parallel channel in the next few days. Each of its indicators formed bullish divergences from DOGE’s price action. However, they need to go a little further before a clear result can be determined.

The best-case result would result in a return towards $ 0.283, which would be a 15% increase from the pattern’s upper trend line.

This is a machine translation of our English version.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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