From today’s open at $0.002533 the price of Dogecoin has spiked up to $0.003185 which is an increase of 26.14% but since the today’s high the price has retraced back as you can see from the chart below to $0.00294.
Judging by the long wick from the downside there are still buyers interested in this particular coin which is why in today’s analysis we are going to look how more room for growth does the price have.
Looking at the DOGE/USD daily chart we can see that after an impulsive wave that lead up to the all-time high at $0.017 on January 6th, the price has been in a correction and has retraced since to the August 14th low at $0.0021 which is 83% retracement.
As you can see that low was in the support zone lower line and the price went below it but the daily candle closed above it leaving a wick that indicates that buyers are still there supporting the price which leads to the current increase as the support was found. I have labeled two consecutive intermediate corrections first being a WXY and second a WXY in the opposite direction. Now we are likely seeing the development of the third corrective structure, but we are going to zoom into lower time frames to determine that.
On the 4 hour chart, it looks like the last structure is going to be a minor WXY correction in the opposite direction much like the intermediate one on the daily time frame. Thus I have measured the Fibonacci retracement correlation and as you can see the wave Y ended on the 0.618 Fibonacci level so this last minor WXY correction looks like it has more room for an increase as the price is currently around the 0.5 Fibonacci level measured from the last lower high to the last lower low.
RSI is signaling overbought as it’s on the 74% and the minor W wave RSI was on the 84%. If this count is valid then I would expect the price to go down further to the projected horizontal support level at $0.0012 because this is a minor correction in the opposite direction usually found in the double or triple three which means that another correction in the primary direction is to be expected.
Zooming into the hourly chart I have readjusted the Fibonacci retracements as to exclude the wicks and with the new readjustment, it looks like the 0.618 level has already been interacted with and the level has rejected the price.
That could mean that the Y wave already ended which is why I am going to zoom further into the lower time frames to analyze the current upswing.
On the 30 min time frame, I have tried to count the subwaves and label then accordingly buy because of the choppiness of the price action caused by insufficient trading volume I had a tough time doing so and I can’t accurately do it.
I do believe that this current upswing is the wave 3 and that we are going to see some sideways movement before another upswing to the resistance zone lower line where 0.786 level is also at $0.00349.
On the 15 min time frame, we can see that the price last impulsive move has stopped and a minute correction in an abc manner is developing as the minute b wave has been confirmed by the lower high with a wich indicating selling pressure.
It is still unclear whether the price has one more impulsive wave to the upside or was this the last one before the Y wave of the minor correction is finished by I am certain that in either way the price is heading further down to lower lows after this upswing is finished because I see this as the last intermediate correction to the downside and the next horizontal support level I see strong enough to withhold the momentum is at $0.00124.
The post Dogecoin (DOGE) Price Technical Analysis: Increase by 26% While Market is Red appeared first on Blockonomi.