DOGE- Breakout in the next 24 Hours - What About 4/20?
Situation: After a rather insane rise this week, DOGE entered a corrective pattern and is painting a descending triangle, or a very slight rising wedge. The market is still recoiling from its insane climb this past week, and whales are presumably still taking profit.
Note on Triangles: When you see a descending triangle pattern, it indicates that sellers are increasing in strength, and that buyers are weakening as they get pushed back against the bottom line/price in the triangle until the sheer volume of sellers overwhelms buyers altogether and the pattern breaks to the South.
Whats Next: As DOGE is in a typically bearish pattern and considering the week DOGE had, a bearish breakout -meaning it will break South of the triangle and fall further - is a reasonable expectation. This is a corrective pattern due to the market being overbought.
You can predict the extend of a breakout by looking at the length of the triangle at it's deepest and overlay that below the breakout point, or look for other strong supports or fib retracements. In this case I will be watching 17/18 cents as a reasonable target for the floor in a bearish breakout. This is invalidated if DOGE breaks North above the top trendline in the triangle. Failing that, the next (and stronger) value area is below there at 13 cents where DOGE has very strong support.
However- looking beyond charts, I think the memeability of DOGE, plus Elon's fondness of it, and with 4/20 coming up- it feels like this may be a prime opportunity for Elon or Snoop Dog or some celeberties to tweet something that goes viral enough to pump DOGE again. But this is highly speculative. But Elon does have a fondness for 2am stoner Tweets and I can't imagine he will let his adoring fans go without acknowledging them on this glorious holiday.
Whats Next: I will look for possible buy entries on a small bag of DOGE (for fun) around either 18 cents or at 13 cents on 4/19. Look for a strong confirmation that its a good entry, like a strong bounce off of those price points on a 15m candle. If it doesn't get that low we'll reconsider our entry target. Bear in mind that charting DOGE can be a gamble sometimes, one tweet from Elon will send it running up again. And there are whales out there with a billion dollars in DOGE who could also dump onto the market to crash price. So trade carefully. Also nothing can go up forever. This is not advice and DOGE is a highly volatile asset, risk management is always the key to trading crypto.
Note on Triangles: When you see a descending triangle pattern, it indicates that sellers are increasing in strength, and that buyers are weakening as they get pushed back against the bottom line/price in the triangle until the sheer volume of sellers overwhelms buyers altogether and the pattern breaks to the South.
Whats Next: As DOGE is in a typically bearish pattern and considering the week DOGE had, a bearish breakout -meaning it will break South of the triangle and fall further - is a reasonable expectation. This is a corrective pattern due to the market being overbought.
You can predict the extend of a breakout by looking at the length of the triangle at it's deepest and overlay that below the breakout point, or look for other strong supports or fib retracements. In this case I will be watching 17/18 cents as a reasonable target for the floor in a bearish breakout. This is invalidated if DOGE breaks North above the top trendline in the triangle. Failing that, the next (and stronger) value area is below there at 13 cents where DOGE has very strong support.
However- looking beyond charts, I think the memeability of DOGE, plus Elon's fondness of it, and with 4/20 coming up- it feels like this may be a prime opportunity for Elon or Snoop Dog or some celeberties to tweet something that goes viral enough to pump DOGE again. But this is highly speculative. But Elon does have a fondness for 2am stoner Tweets and I can't imagine he will let his adoring fans go without acknowledging them on this glorious holiday.
Whats Next: I will look for possible buy entries on a small bag of DOGE (for fun) around either 18 cents or at 13 cents on 4/19. Look for a strong confirmation that its a good entry, like a strong bounce off of those price points on a 15m candle. If it doesn't get that low we'll reconsider our entry target. Bear in mind that charting DOGE can be a gamble sometimes, one tweet from Elon will send it running up again. And there are whales out there with a billion dollars in DOGE who could also dump onto the market to crash price. So trade carefully. Also nothing can go up forever. This is not advice and DOGE is a highly volatile asset, risk management is always the key to trading crypto.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.