26 May 2023 15:44, UTC
Reading time: ~2 m
In a recent YouTube video, the trading channel More Crypto Online highlighted the ongoing sluggishness on Dogecoin’s (DOGE) charts. In addition to this, the meme coin has seen a notable decrease in on-chain activity, prompting concerns among investors. According to their latest analysis, the meme coin is at risk of dropping swiftly in the coming weeks.
Their analysis suggested that Dogecoin was following a downward trend on its 8-hour chart, potentially forming an ending diagonal pattern. The video also pointed out that the November high marked the beginning of DOGE’s price correction, which was shortly followed by a second move up.
However, the absence of a clear third wave in the current Elliott Wave structure indicated the likelihood of a fourth and fifth wave — suggesting that there could be further price drops in the near future. While acknowledging the complexity of the structure, the More Crypto Online team pointed out that the current wave count seemed to align with market conditions.
Furthermore, the video emphasized that the third wave, considered a corrective structure, was also taking the form of a diagonal. As such, the market was believed to be in the C wave of an ABC correction structure. Despite the possibility of alternative interpretations, the prevailing analysis suggests a further decline in the price of Dogecoin.
Their analysis also focused on the importance of DOGE staying below the $0.0837 mark. The video suggested that breaching this resistance level would be highly bearish, potentially leading to a swift drop toward the next support area between $0.05 and $0.02.
They did, however, acknowledge that a minor positive rebound could potentially occur. Despite this, the overall outlook was that the market will continue to favor the downside until a significant upward impulse is observed.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss
Read the full article here