Cryptocurrencies

Analysis: Last time, Dogecoin rose 28% from this point


The crypto market seems to be having a bit of a hard time. Many coins move around the price of their previous low, and this is also the case with DOGE. The last time the coin traded around this price, it rose by 28%. Will it work again this time, or is DOGE heading for a downward trend? Let’s look at the graphs.

The big picture

We’ll start this analysis with a look at the daily chart. This gives us a good idea of ​​the trend of DOGE, together with the most important price levels. The latter are indicated below as gray zone, blue zone and red zone.

As you can see, these levels have had a lot of influence on the development of the price. Almost every time the coin arrived at such a zone, the price changed direction. And if DOGE broke through, it gave the starting signal to move further in that direction. That is why these levels are still important.

We can now leave the gray and blue zones for what they are, as they are much too far away from the current price, but it is good to have this clear in advance – if the price finds its way back.

The red zone and the blue line, on the other hand, are very important. The red zone is the strongest support level, and the blue line ensures that the coin does not enter a downtrend. The latter can be seen through the orange arcs: DOGE first made lower lows and lower highs, but that has now changed.

What can we expect?

To analyze this better, let’s also take a look at the 4-hour chart. Here each candle represents 4 hours, giving us a more detailed picture. Here you can see that the coin has not yet closed below the previous low.

This could be a harbinger of the currency rising further. In fact, the trend is still upward as no candle has closed below the blue line yet. So if this trend continues, the price could soon reach a price of $ 0.17 again, the place of the previous high. This could result in a similar increase to the 28% we already mentioned.

However, we must remain realistic and not rule out a negative scenario. However, this would only come into effect if the currency does not hold strong around this point. If the candle closes below the blue line, the price will probably move downward towards the red zone for a while. There it can then receive support again, but the fact remains that the upward trend is then broken. Therefore, keep a close eye on the graphs.

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