DOGE needs to hit this level again to confirm the uptrend
Dogecoin (DOGE) has fallen since hitting an all-time high on May 8th.
Although it rebounded and broke above the descending resistance line, the uptrend is not yet confirmed.
DOGE crashes after hitting an all-time high
DOGE hit an all-time high of $ 0.737 on May 8th. This was the culmination of a huge bull run that saw the token gain 54.890%.
DOGE has since fallen. It hit a low of $ 0.163 so far on June 21st. The low was hit right at 0.786 fib retracement support. There was a crack that left a long wick at the bottom.
Despite the recovery, technical indicators are falling. The MACD has shown a bearish reversal signal, while the stochastic oscillator has produced a bearish cross (red symbols).
Weekly DOGE / USDT Chart | Source: TradingView
Try to turn back
The daily chart offers a slightly more bullish picture. While DOGE has been moving along a descending resistance line since May 14, it broke out on June 29. In addition, the stochastic oscillator created a bullish cross.
However, the token was rejected by the $ 0.285 zone. The area previously acted as support (green symbol) and has now turned into resistance (red symbol).
Until this zone has recovered, the medium-term trend cannot be viewed as bullish. Additionally, the RSI is below 50 and the MACD has not yet entered positive territory.
Daily DOGE / USDT Chart | Source: TradingView
Trader @GregHorvatFX outlined a DOGE chart indicating the token is nearing a major Fib confluence that could serve as the bottom of a correction.
If the decline is indeed a complex WXY structure, there is a good chance the price will hit another low.
If the W: Y wave has a ratio of 1: 0.61, it will result in a low of $ 0.124 (black), which is significantly lower than the previous low of $ 0.165.
In addition, the partial waves A: C (red) have no obvious similarity in length, since wave C is longer than 1: 1 of A, but shorter than their ratio of 1: 1.61.
Hence, we cannot consider the trend bullish unless DOGE recovers the $ 0.285 area.
DOGE / USDT 12-hour chart | Source: TradingView
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto