Dogecoin Crashes 40%, But This Analyst Sees A Bullish Setup

In a dramatic reversal, Dogecoin (doge) fell from around $ 0.34 as low as $ 0.20, so that nearly 40% of its value was wiped out before provisional stability was near $ 0.25 at the time of the press . Crypto analyst “Coosh” Alemzadeh (@alemzadeHC), however, maintains a bullish long-term prospect, to share A weekly graph of doge/USD and comment: “Doge: looks really good here”, despite the recent unrest.

Why Dogecoin still looks bullish

The unexpected news of new rates due to the Trump administration about large trading partners such as China, Mexico and Canada sent shock waves on financial markets on Friday, including cryptocurrencies. The news has led to a broad sale of risk provisions, in which Dogecoin, known for its high volatility, is particularly affected. The fear of an escalating trade war has filled in the trust of investors and pushes many to liquidate their positions in cryptocurrencies.

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After the rate announcement, Dogecoin saw an immediate and important decrease within a few hours after breaking the news. During the weekend, the crypto-market crash extended as part of a larger market reaction, with large altcoins such as XRP and Cardano also experiencing percentage with double digits. The entire cryptomarkt has wiped out more than $ 2.2 billion in crypto readings.

Alemzadeh card, signed on the weekly period of time, shows the price of Doge that initially breaks above a falling red trendline in October. That line has acted as an important resistance zone that extends to earlier local highlights, and the subsequent retreat has brought the market directly under the trendline again.

At the same time, Dogecoin is still placed above his 30-week advancing average (30 W), which is deported as a pink-stuck curve and is currently around the range of $ 0.20- $ 0.22. Analysts often consider weekly above this average as a sign of underlying power, which suggests that Doge can still hold its bullish structure if the market above that threshold is stable.

The graph also emphasizes a series of Fibonacci racement and expansion levels, which each offer insight into potential support and resistance. In the foreground is the 0.618 Fibonacci racement around $ 0.2667, a critical region that now hangs the price. This level often attracts the attention of traders who want to identify whether the market has a standard withdrawal or a deeper correction has started.

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Next is the 0.786 retracement near $ 0.3467. Furthermore, full retracement around $ 0.4843 marks a more distant objective if Doge recovers its bullish momentum. Even more increased extensions, indicated on the graph of Alemzadeh at $ 1.27 (1,618) and $ 2.30 (2.0), serve as hypothetical goals if the token achieves a large outbreak.

An extra element is the Elliott Wave labeling, which reflects what waves “1, 2, 3” seem to be, followed by the current dip marked as golf “4” near $ 0.26. In traditional Elliott golf theory, Golf Vier usually goes back in the zone of 0.236-0.618 of the previous Golf, so the current price action that touches the 0.618 Fibonacci point, fits well with that pattern. If DOGE Wave Four support, the next phase – Golf Five – can float the market again above former highlights, with the main objectives being $ 1.27 and $ 2.30 when Bullish Sentiment returns.

At the time of the press, Doge traded at $ 0.25.

Featured image made with dall.e, graph of tradingview.com