Briefly –
- DOGE’s weekly price chart depicts an engulfing bearish candlestick formation.
- The token has concealed bearish divergence between 2 critical oscillators.
- Elliot Wave Theory indicates lower prices.
Dogecoin has a higher probability of sustaining losses during the weekend sessions. After the struggles that the total market experienced last week, meme tokens battle with plunging catalysts. Dogecoin showcases a bearish engulfing candle in its prevailing weekly candlestick. Moreover, the current weekly chart close puts the leading meme token beneath its weekly Tenkan-Sen.
DOGE Bears to Test $0.185 Support
For now, Dogecoin’s closest support is at $0.185. Beneath this lies the 100% FIB expansion around $0.125. However, the chances of $0.125 holding as a massive supports remain low. The volume profile depicts a colossal volume trough from $0.16 to $0.08. This range has seen minimal to zero trading actions over the past sessions.
If DOGE claims its ATH at the Elliot Wave Theory Grand Supercycle end, it will not be challenging to predict the possible closure of the initial ABC corrective wave. As Wave Two is usually 50%, 61.7%, 76%, or 85% of Wave One, the following support will lie beneath $0.125.
Meanwhile, the price zone from $0.051 and $0.066 will likely be wave C’s endpoint. This area constitutes the 50% FIB retracement, 161.8% FIB extension, 2021 VPOC, Senkou Span A, and B. Moreover, the concealed bearish divergence between the Composite Index and the Relative Strength Index shows that DOGE has a high possibility to hit $0.066.
However, the current Dogecoin condition should not make bears overconfident. The token might secure support in the price range of $0.125. Also, DOGE will cancel the bearish case if bulls step up to take the meme asset over $0.402 (weekly Kijun-Sen).
The meme cryptocurrency space suffered losses after the flash crash that the market saw early last week. As most alts trades in a recovery attitude, it seems like DOGE needs more to recover. That means the correct upsurge catalysts and the total market support. Meanwhile, Bitcoin struggles at the $45K level after failing to overcome the obstacles at $47K. If the market leader gains ground to register continuous upside moves, DOGE will also rise higher.
Do you think that DOGE will ever reclaim its record high? We are interested in your opinions. Comment below.
James Thompson