In today’s analysis, after a very long time, we will focus on Dogecoin (DOGE). In Wednesday I announced that if nothing interesting happens on the market with our king, we will start with some altcoin. And why not this little dog? If I remember correctly, the last time we did this thing was at the turn of April / May.
That’s when I warned that Dogecoin was for investment total nonsense and after those extreme pumps, it was also a high-risk investment. What I observed with my eye from social networks, despite the considerable falls, was the effort on the part of retail to buy it. They are now, in popular parlance, in complete disarray, and their investment is currently of minimal value.
Current situation at 1D TF DOGE / USD
We will analyze Dogecoin only on the daily chart, because there is not much to solve on higher time frames. In addition, on the daily chart you can beautifully observe the whole development, from the projectile upwards and then the very collapse of the bubble, which inflated in just a few months to insane proportions. I also deliberately left a linear scale so that it was clear to everyone what had happened here in that half year.
Dogecoin has fallen by about 80% since all time high, making Doge one of the most losing coins on the higher ranks. As for the overall structure, more experienced people have certainly noticed that it is possible to identify the beginning of efforts to rotate the course. Theoretically, the shopper is trying to design for us round the bottom. The truth is that the negative momentum has almost disappeared.
Therefore, there are conditions for a short rally. In addition, the S / R level of 0.162 USD holds as concrete. This level was first tested in April, then the course got very close during May. Subsequently, there was a nice reaction in June and in July the defense was also successful. It also follows from the above that the current level must be maintained. It can be assumed that when the level falls, it will be an even bigger slide down.
The first stronger level can then be found up to $ 0.088. Otherwise, the Doge broke long ago 100-day moving average (MA 100) and at the end of June there was a retest of this dynamic level. And right now he’s fighting for MA 200 and it will be very important if the course falls below this moving average.
In any case, the last reflection is from $ 0.162 weak and the course hasn’t gotten much anywhere yet. As for Volume Profile, according to this tool, the most liquid areas start at just $ 0.088. Here you can count on huge demand. However, these are price levels that are more than 90% from all time high.
Indicators
The daily RSI has a low of about 27 points, so the market has not yet completely cleared and has not even reached the bottom. In any case, it was not possible to reach the upper half of the values for many weeks. On the contrary, the MACD still holds a positive momentum, but is gradually losing strength.
In conclusion
At first glance, it seems bubble on Dogecoin burst. However, on the one hand, there is still a prospect that another strong rally may take place. Why? Because BTC has not yet made a 100% decision. On the other hand, there is still a lot of room to fall. If the bull run has really ended, then it is good to realize that these shitcoins in the bear market will fall by 99%.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, always trading only at your own risk. Cryptheory team strongly recommends individual risk considerations!
