Dogecoin price at risk of flash crash towards $0.10

  • Dogecoin price recently dropped below a triple-bottom pattern on its Point & Figure chart.
  • The last uptrend angle warns of a steep and rapid move south if buyers don’t come in.
  • Current weakness exacerbated by trading below the 2021 Volume Point Of Control

Dogecoin price shows signs of disappointing bulls who were anticipating an imminent breakout towards $0.50. Instead, sellers were able to take control and push Dogecoin below a triple-bottom, threatening a return to price levels last traded in April 2021.

Dogecoin price finds sellers in temporary control, massive sell-off ahead if buyers fail to support Dogecoin

Dogecoin price has a genuine threat of an imminent flash crash. The bear flag pattern on the $0.01/3-box reversal Point and Figure chart shows just how close Dogecoin is to entering into a capitulation move. A Fibonacci expansion drawn from $0.34 to $0.19 shows the 161.8 % Fibonacci expansion level is at $0.10. Sellers may look to capitalize on any weakness that sees Dogecoin drop below $0.19 to target $0.10. However, if the current column of Os were to retrace all the way to $0.19, and dip lower to $0.17, then a Spike Pattern will develop, giving bulls an opportunity for a fast mean reversion trade setup.

On the long side of the market, there is a hypothetical bullish trade opportunity for Dogecoin price. The entry would be a buy stop order at $0.34, a stop loss at $0.30 and a profit target at $0.50. The entry is based on the break of a triple-top that would develop if a new X-column was pushed to the most recent swing highs. However, if some range trading goes on in the interim and a split triple-top develops, the entry remains valid.

DOGE/USDT Daily Ichimoku Chart

The hypothetical long trade setup will be invalidated if Dogecoin price drops below the $0.18 value area.


Read Full Article

Latest articles

Crypto Exchange Binance Explains Its ‘Rare’ Dogecoin Issue — Resumes DOGE Withdrawals – Exchanges Bitcoin News

Cryptocurrency exchange Binance has explained its dogecoin issue which resulted in withdrawal suspension and Tesla CEO Elon Musk calling the problem “shady.” The...

Bitcoin Open Interest Takes Second Largest Dump Of 2021

Bitcoin has recorded significant losses in just the first week of December. The digital asset has taken some of the largest hits for...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here