- May 17, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Dogecoin (DOGEUSD) hit last week the 1W MA200 (orange trend-line) for the first time since the December 07 2020 1W candle. This is the trend-line that (excluding the March 2020 COVID crash), marked the bottom during the previous Bear Cycle.
This idea illustrates DOGE’s long-term Cycles in order to get a better understanding of where we stand today. Last week’s low on the 1W MA200 completed a -90% correction since the May 03 2021 1W candle All Time High. As you see the previous Cycle also formed its bottom on a -90% correction, while the 2014 Cycle did so after a -95% correction. Also the recent low completed 53 weeks (371 days) since the Cycle’s High. The previous two were 57 weeks (399 days) and 67 (469 days) respectively.
That makes the current levels a solid buy for the long-term. However it is common for Dogecoin to consolidate and have a very long accumulation phase before having its aggressive parabolic rally that leads to a Cycle (blow-off) Top. The Accumulation Phases of the last two Cycles (from bottom to the start of the parabolic rally) were identical, 97 weeks (679 days) in 2019/2020 and 96 weeks (672 days) in 2015/2016.