(Akash Girimath – FXStreet)
– Dogecoin price retests the POC at $0.066 of the volume profile for the last 100 days.
– A bounce that emerges after a sweep of the equal highs formed at $0.057 has a high chance of sustaining an explosive move.
– A daily candlestick close below the $0.048 level will invalidate the bullish thesis.
Dogecoin price is at crossroads and shows signs of a steady consolidation above a stable support level. However, there needs to be momentary pain before a long-term and explosive rally originates.
Dogecoin price makes precise plans
Dogecoin price triggered a 71% crash between April 25 and June 18, which was due to the aftereffects of the LUNA-UST debacle and the ripple effects that blew up the Three Arrows Capital. Regardless, DOGE managed to form a bottom and trigger a run-up.
The volume profile for this range shows that the highest volume traded level, aka Point of Control (POC) at $0.066, is currently being tagged by DOGE. While this barrier serves as a support level, a breakdown of this level is necessary to collect the sell-side liquidity resting below equal lows formed at $0.057.
Interestingly, the aforementioned level also coincides with the demand zone, extending from $0.057 to $0.048, making it a high-probability reversal area.
Therefore, this dip is the best opportunity for swing and position traders to buy or long DOGE at this level. The rally that emerges here is likely to shatter through the short-term resistance levels and retest the midpoint of the 71% crash at $0.110.
In total, this move would constitute a 90% upswing and is likely where the upside is capped for the Dogecoin price.
On the other hand, if the Dogecoin price produces a daily candlestick close below the $0.048 level, it will create a lower low and will invalidate the bullish thesis. This development could see DOGE move down to $0.045 or $0.040 levels.
Dogecoin (DOGE/USD) Elliott Wave technical analysis
(Peter Mathers – TradingLounge)
Dogecoin (DOGE/USD)
Elliott Wave Analysis TradingLounge Daily Chart, 2 August 2022,
DOGE/USD Elliott Wave technical analysis
Mode: Motive
Structure: Impulse
Position: Wave 5
Direction Next higher Degrees: wave C of Zigzag
Details: Wave 5 may have finished, and prices are rising.
Wave Cancel invalid Level: 0.04963
Dogecoin Trading Strategy: As the forecast wave (IV) is over, we are looking for opportunities to join the uptrend by looking for throwbacks in wave II and IV sub-wave of (V). But the price must not reverse past 0.04963, which is the beginning of wave 1.
Dogecoin Technical Indicators: Bullish Divergent signal on both MACD and MACD Histogram
TradingLounge analyst: Kittiampon Somboonsod
Dogecoin (DOGE/USD)
Elliott Wave Analysis TradingLounge 4H Chart, 2 August 2022.
Mode: Motive.
Structure: Impulse
Position: Wave 2
Direction Next higher Degrees:
Details: may be rising again in Wave 3.
Wave Cancel invalid Level: 0.04963.
Dogecoin Trading Strategy: The price structure has begun to form an uptrend, with wave ((1)) over and wave ((2)) moving sideways with a double corrective pattern. May have to wait for the Break Corrective Channel to be confirmed. but price must not reverse past 0.04963, which is the beginning of wave 1.
Dogecoin Technical Indicators: Hidden Bullish Divergent signal, wait for a reversal at the 0 line of the MACD to confirm.
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