DOGE Downtrend Comes to Rest After Bounce

Share Article
In Brief
  • DOGE reached an all-time high price on May 8.

  • It has broken out from a descending resistance line.

  • There is resistance at $0.285.

  • promo

    Join the BIGGEST ICO ever launched in Spain: Buy B2M now.

The Trust Project is an international consortium of news organizations building standards of transparency.

Dogecoin (DOGE) has been moving downwards since reaching an all-time high price on May 8. 

Sponsored



Sponsored

While it bounced and has broken out from a descending resistance line, the bullish trend reversal has yet to be confirmed. 

DOGE drops after all-time high

DOGE reached an all-time high price of $0.737 on May 8. This was the culmination of a very significant bull run, in which the token increased by 54,890%.

Sponsored



Sponsored

DOGE has been moving downwards since. So far, it has reached a low of $0.163, doing so on June 21. The low was made right at the 0.786 Fib retracement support level. A bounce ensued afterwards, leaving a long lower wick in place. 

Despite the bounce, technical indicators are bearish. The MACD has given a bearish reversal signal, while the Stochastic oscillator has made a bearish cross (red icons).

Chart By TradingView

Reversal attempt

The daily chart provides a slightly more bullish picture. While DOGE had been following a descending resistance line since May 14, it managed to break out on June 29. In addition to this, the Stochastic oscillator has made a bullish cross

However, the token was rejected by the $0.285 horizontal area. The area previously acted as support (green icons) and has now turned to resistance (red icon). 

Until the area is reclaimed, the intermediate trend cannot be considered bullish. Furthermore, the RSI is below 50 and the MACD has yet to cross into positive territory.

Chart By TradingView

Wave count

Cryptocurrency trader @GregHorvatFX outlined a DOGE chart, stating that the token is approaching an important level of Fib confluences which could act as the bottom of the correction.

Source: Twitter

If the decrease is indeed a complex, W-X-Y structure, it seems more likely that another low will eventually follow. 

Giving waves W:Y a 1:0.61 ratio would lead to a low of $0.124 (black), considerably lower than the $0.165 low that has been reached so far. 

In addition to this, sub-waves A:C (red) do not have a clear similarity in length, since wave C is longer than 1:1 of A, but shorter than 1:1.61 of it. 

Therefore, unless DOGE reclaims the $0.285 area, we cannot consider the trend bullish.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

Market signals, studies and analysis! Join our Telegram Today!

Go