Dogecoin signals bottoming out as DOGE rebounds 30% in two weeks — What's next?

2 years ago

A brutal correction witnessed successful the Dogecoin (DOGE) marketplace betwixt May 2021 and February 2022, which saw the terms dropping by astir 85%, appears to person travel to a halt this month.

DOGE/USD rebounds 30% successful 2 weeks

DOGE experienced strong dip-buying erstwhile its terms crashed to levels astir $0.10 2 weeks ago, resulting successful a 30% rebound determination to $0.14 arsenic of March 27. Meanwhile, the coin's upside retracement originated astatine a enactment level that constitutes a "falling wedge" setup, signaling an extended bullish reversal successful the play sessions ahead.

In detail, a falling wedge signifier occurs erstwhile the terms trends little portion fluctuating betwixt 2 downward sloping, converging trendlines. In a cleanable scenario, the setup results into the terms breaking retired of the descending scope to the upside, rising by arsenic overmuch arsenic the maximum region betwixt wedge's precocious and little trendlines.

DOGE's rebound from the wedge's little trendline 2 weeks agone opens up its possibilities to proceed the determination upside toward the precocious trendline — adjacent $0.18. As such, breaking supra the precocious trendline further exposes Dogecoin's terms emergence toward $0.37, up much than 150% from today's price.

DOGE risks

Veteran investor Tom Bulkowski sees a falling wedge arsenic a "poor performer" erstwhile it comes to predicting bullish illustration patterns, noting that their "breakeven nonaccomplishment is precocious and the mean terms is low." He cites a survey of 800 trades that shows that the anticipation of a falling wedge breakout gathering its bullish people is adjacent 62%.

Additionally, Dogecoin's way of grounds of showing a play of highly affirmative correlation with Bitcoin (BTC) — astatine 0.94 against the cleanable people of 1 arsenic of March 27 — could besides bounds its bullish bias if the second drops owed to ongoing macroeconomic and geopolitical pressures.

Mice McGlone, the elder commodity strategist astatine Bloomberg Intelligence, noted that Bitcoin could driblet to arsenic debased arsenic $30,000 owed to its beardown correlation with the U.S. banal market. Nonetheless, helium maintained that BTC's terms should retrieve from its bearish slump to people $100,000 successful the agelong term.

DOGE terms levels to ticker retired next

Dogecoin's latest rebound determination present eyes a quick run-up towards the $0.15-0.19 area, a scope encapsulating 3 intelligence absorption levels: the 20-day exponential moving mean (20-day EMA; the greenish wave), the 50-day EMA (the reddish wave), and the 0.618 Fib enactment (near $0.19) of the Fibonacci retracement graph — each shown successful the illustration below.

A beardown pullback, accompanied by a emergence successful volume, from the said absorption country could person DOGE trial the 0.786 Fib enactment adjacent $0.10 arsenic its interim downside target. Conversely, a decisive determination supra the scope could effect successful an extended upside momentum towards $0.24, with an oculus connected $0.30 and $0.37 (also the falling wedge target).

Conversely, a decisive determination supra the scope could effect successful an extended upside momentum toward $0.24, with an oculus connected $0.30 and $0.37 (also the falling wedge target).

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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