- February 11, 2021
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
DOGE has been the talk of the week because of its huge prior rise, mainly assisted by Elon Musk’s tweets. Even though the future looks bright for this coin, there are indicators on the 1W time-frame that point out to a correction first.
As you see on the chart, I’ve drawn its historic performance on a Fibonacci Channel, with the 0.618, 0.5, 0.382 retracement levels playing a key role since 2014. For that reason I’ve also inserted their Fib extensions: -0.382, -0.5 and -0.618.
During the first Cycle, DOGE made an initial high just outside the 0.382 Fibonacci retracement level. Then it pulled back considerably and only found Support within the 1W MA50-MA100 zone before resuming the cyclical rise and make its Peak (All Time High at the time) around 0.019.
That initial High looks very similar to the High it just did, as both the 1W RSI and LMACD are on the levels of early June 2017. In fact see how the RSI pattern looks the same from all the way to the bottom of the Bear Cycle, i.e. the start of the Bull Cycle. The LMACD seems to be preparing a Bearish Cross too.
Assuming that is the initial High, if the pattern of the previous Cycle is repeated then we can expect a pull-back within the 1W MA50-MA100 and around the 0.618 Fibonacci retracement level and after that the Cycle’s Peak around the -0.5 Fibonacci extension. That is currently a little over 0.6000. In addition and with respect to DOGE’s Fibs on the long-term Channel Up, a 0.6000 peak would make a perfect touch on the Channel’s -0.382 extension.
What do you think? Is DOGE preparing for one final pull-back before an end of the year rally to 0.6000?
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