Dogecoin price to return to $0.09 as DOGE enters bear market – FXStreet

Jonathan Morgan Jonathan Morgan
Independent Analyst

Dogecoin price continues to face significant weakness. A double whammy of low participation due to seasonality and a bearish outlook has leaned heavily on any near-term positive movement for DOGE.
Dogecoin price has completed one of the most sought-after long-term bearish signals within the Ichimoku Kinko Hyo system: the Ideal Bearish Ichimoku Breakout. The rules for this are as follows:
All of the above conditions are currently true for Dogecoin price. As a result, a solid and sustained downside move is now likely for Dogecoin, with an initial support zone that may not appear until the $0.09 value area. After that, the volume profile becomes thinner, the lower DOGE falls, and the speed of the descent also increases.
The ultimate support for Dogecoin may not appear until the 2021 Volume Point Of Control at $0.05 – but that would represent a clear capitulation move as Dogecoin will have lost over 93% of its value from the all-time high established in May.

DOGE/USDT Daily Ichimoku Chart
The only near-term relief that bulls may find is an incoming mean reversion setup on the weekly chart. The gaps between the bodies of the weekly candlesticks and the Tenkan-Sen continue to widen. A return to test the Tenken-Sen at $0.24 is increasingly more probable the longer that Dogecoin spends away from that level.
To deny any further bearish bias, Dogecoin would need to have a weekly close at or above the $0.25 value area.
 
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As Ethereum prepares for its upgrade from proof-of-work to proof-of-stake, there is a group of miners preparing for a hard fork. ETC cooperative criticized the plan for a hard fork of the Ethereum network, however, proof-of-work proponents responded negatively. 
Ripple experienced a significant movement of tokens onto active wallets and exchanges. XRP has printed classical bearish divergence in recent days. A breach above the $0.48 level would invalidate the bearish trend.
Dogecoin and other meme coins rally as drums beat for the upcoming ETH merge. DOGE sits on robust support highlighted by the IOMAP cohorts at $0.0681. Whales ease off their selling spree as retail investors return to reinforce the uptrend.
BTC drops by 2%, almost erasing all gains accrued over the last week. Attention is shifting to Bitcoin's $24K inflection point amid rising selling pressure from the 100-day SMA. A bullish RSI on the daily chart upholds BTC's uptrend.
Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
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