- December 15, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
We last looked into Dogecoin (DOGEUSDT) back in late October, analyzing the potential for break-out above the Channel Down that it has been trading in since May 2021 by using the Fibonacci extension levels.
As you see, the aggressive Musk-led pump hit the 1.5 Fib extension of the Channel Down, while breaking above the Bear Cycle Resistance of the 1W MA50 (green trend-line) and as the news effect faded, it pulled-back following the FTX collapse back to the 1D MA200 (orange trend-line), which has so far held as a Support twice. This, along with the subsequent rejection on the 1W MA50, have largely confirmed DOGE entering into its new Bull Cycle by creating a new (green) Fibonacci Channel Up.
As long as the 1W MA300 (red trend-line) holds, this can channel the price to the upper Fibs of both the former Channel Down and the current Channel Up. As long as the 1D MA200 holds, our target is the zone within the 1.618 (blue) and 1.5 (yellow) Fibs. If the price tests the bottom of the Channel Up again, we then expect a longer-term recovery back to the 1.5 (yellow) Fib, which by the time can also make contact with the 2.0 Channel Down Fib, the last Resistance before the Bull Cycle’s mega rally.