Dogecoin price pauses before returning to $0.14
Dogecoin price action has experienced some major whipsaws in price action since last week. Unless something drastic or unexpected happens, that behavior is likely to continue into this week.
Dogecoin price has made some major price swings over the past week. Upon hitting new 2022 lows on May 12 at $0.069, DOGE then rallied higher back to $0.93 on May 15 – a 35% gain from the lows.
The flash crash experienced by Dogecoin (and the broader cryptocurrency market) last week did complete one technical condition that would yield a strong case for continued momentum upwards. As a result, DOGE (finally) moved through the extremely thin zone in the 2021 Volume Profile and bounced off the top of the next high volume node at $0.07.
As a result of the rapid drop last week and the subsequent support level found, Dogecoin price has generated an aggressive long opportunity on its $0.005/3-box reversal Point and Figure chart.
The theoretical long entry for Dogecoin price is a buy stop order at $0.095, a stop loss at $0.08, and a profit target at $0.145. The trade setup represents a 3.33:1 reward for the risk with an implied profit target of 57% from the entry. A trailing stop of two to three boxes would help prevent any profit made post entry.
DOGE/USDT $0.005/3-box Reversal Point and Figure Chart
The long setup for Dogecoin price is based on a Point and Figure pattern known as a Spike Pattern. While no clear definition of this pattern exists, it is generally accepted that the Spike Pattern must have at least fifteen or more Xs/Os in a single column to qualify. In addition, because the entry is always on the 3-box reversal, there is no invalidation point on the pattern.
Downside risks exist but are likely limited to the $0.06 value area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Solana has been slammed with a lawsuit claiming SOL is an unregistered security. The plaintiff claimed that Solana’s SOL token is a centralized security and insiders profited immensely while retail traders suffered losses.
MATIC price has shown an incredible recovery run over the past three weeks. The bounce from the recent pullback suggests that bullish momentum is back.
Tezos price has been coiling up under a stiff resistance barrier for almost a month. The recent recovery has pushed it close to forming a bullish setup that could potentially result in an uptrend.
Bitcoin price, Ethereum and other cryptocurrencies are slowly but surely recovering from the uppercut cryptocurrencies received these past few weeks and months.
Bitcoin price is attempting to move higher against a massive cluster of resistance levels, all of which are working to stop its bullish momentum. Investors need to be careful trading around this level as it could witness some serious volatility in the market.
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.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.