DOGE Dogecoin: Concerning Downside
Hello friends, today I am completing a technical analysis on the 1D linear scale chart for Dogecoin ( DOGEUSD ), an altcoin cryptocurrency. Please review the chart and analysis below carefully as there are many trendlines and indicators.
#CryptoPickk notes the following:
1) Dogecoin price had an all time high in May 2021 and since that point, the price has only came down.
2) Recently due to the #cryptocrash, the price dropped significantly breaking a multi-month bottom trendline (in yellow color).
3) What's the concerning issue is the price came back up and re-tested the bottom trendline and since that point, Dogecoin price started falling. This is outlined by the white color path arrow.
4) Using the Fibonacci Retracement tool, the price has the potential to test the 0.786 level before moving back up. This would be a 65-70% drop from current price levels.
5) The Volume Profile (VPVR) is very heavy in that area (0.786 Fib level) as well.
6) The Volume is low. I am using a Bittrex Exchange chart but I checked Coinbase and Kraken and it is low there.
7) The RSI (relative strength index) and Stochastic RSI (Stoch RSI) are in the oversold area. Since both are oversold, the price may consolidate or go up short-term, but price has potential to drop significantly further. Stay a bit cautious as the economy and markets are fragile right now.
What are your opinions on this?
If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below.
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research! #cryptopickk
#CryptoPickk notes the following:
1) Dogecoin price had an all time high in May 2021 and since that point, the price has only came down.
2) Recently due to the #cryptocrash, the price dropped significantly breaking a multi-month bottom trendline (in yellow color).
3) What's the concerning issue is the price came back up and re-tested the bottom trendline and since that point, Dogecoin price started falling. This is outlined by the white color path arrow.
4) Using the Fibonacci Retracement tool, the price has the potential to test the 0.786 level before moving back up. This would be a 65-70% drop from current price levels.
5) The Volume Profile (VPVR) is very heavy in that area (0.786 Fib level) as well.
6) The Volume is low. I am using a Bittrex Exchange chart but I checked Coinbase and Kraken and it is low there.
7) The RSI (relative strength index) and Stochastic RSI (Stoch RSI) are in the oversold area. Since both are oversold, the price may consolidate or go up short-term, but price has potential to drop significantly further. Stay a bit cautious as the economy and markets are fragile right now.
What are your opinions on this?
If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below.
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research! #cryptopickk
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