- The latest price movements saw Dogecoin making new 2022 lows.
- Declines officially surpass 365 days in length.
- Massive corrective move impending.
Dogecoin (DOGE) plummeted on Monday as the crypto market saw massive downside actions. The original meme coin closed Monday 18% down, briefly beyond a daily low, that comprised a total 20% drop. Nevertheless, the direction might change soon.
DOGE Bounces of New YTD and 2022 Lows
Dogecoin (DOGE) hit a massive milestone in price and time. For now, the altcoin exhibits a decline that surpasses 365 days. The new 2022 and YTD low shows an 87% crash from the 8 May 2021 ATH. Nevertheless, the extreme of the prevailing fall printed a massive long pattern for Dogecoin.
For now, a theoretical entry for DOGE stands on the $0.005/three-box reversal Point & Figure chart. The pattern is a stop-loss near $0.105, a $0.12 stop order, and a $0.22 profit target. Moreover, a two – to three-box trailing stop remains an option and might help protect any profit acquired after entry.
The long pattern for DOGE comes from the Spike Pattern, a formation within the Point & Figure with column boasting more than fifteen Os or Xs. Analysts perceive it as a move that touched extreme and ready for massive corrective action that may often flip into a broad trend shift.
The predicted profit target stays beneath the persistent bear market angle. Also, it’s the 50% FIB retracement zone on a weekly Ichimoku timeframe. The theoretical (long) pattern represents a 6:1 risk-reward.
The Spike Pattern does not have an invalidation level since the entrance stays on the three-box reversal. Dogecoin’s stop loss and entry will mimic the new lows if the prevailing O-column drops lower. Meanwhile, the profit target was unchanged.
Dogecoin’s upside potential emerged as the broad market attempted recovery. While publishing this content, the cumulative market capitalization stood at $1.45 trillion, gaining 2.31% over the previous day.
Also, Bitcoin surged 3.72% within the past 24 hours to $31,747.68. Maintaining the upside narrative can support a revival in the near term. That would trigger upticks in the altcoin market, bolstering DOGE’s upside thesis.
Stay tuned for upcoming market updates.