Dogecoin Crypto Analysis
Dogecoin Crypto Analysis
Hello and welcome to another update blog about Dogecoin crypto analysis. Yeah, on the Dogecoin crypto analysis chart, the idea is we're at a critical juncture, really quite interesting at the moment. Um, similar situation to Bitcoin, very, very important juncture because what happens maybe today or tomorrow could decide about what Doge is or which pathway Doge is going to follow in the coming weeks or the coming week. We have two scenarios on the chart; they are both at the moment bullish. One is short-term bullish, one is short-term bearish, and it's really just a question of, um, okay, which direction do we break out and then we can follow the pathway either in yellow or in white.
The parameters I defined in the last few blogs were respected so you can see that they are very relevant and the price hasn't really moved significantly; it's just trending sideways. However, we've seen initially the price come down after this high, which we call a b-wave top. Then we had, um, a wave one to the downside in the yellow count. Let's start with that short-term bearish scenario, which should actually be a wave C of four to the downside, which could send the price back into the orange support region. That would also be in line with Bitcoin's short-term bearish scenario.
In this scenario, we have a wave 1 down, a wave two up, and then this is an AB, and the c-wave could be next. The c-wave would be a five-wave move and maybe we've seen here a one two setup of the c-wave of wave three, then we should see a four and a five to complete this move down. For this scenario I communicated before that we're likely in an ending diagonal. Ending diagonals mean we have to be prepared for frequent wave count changes and adjustments, and it also means that we have to expect, um, sometimes corrective rallies like this b-wave rally. But I highlighted that ideally this b wave gets rejected in the resistance area, which it actually did. That's what I mean with um, the parameters are being respected. So 19.6 to 21.2 cents was the resistance area. The idea was to get there rejected and then come down. I did say to you though that okay, it's possible there's another juncture here, another pivot that the price needs to break below to confirm further the yellow scenario but that until we break below it here 17.5 cents the white count is a reasonable assumption and reward to risk is obviously then quite favorable for the white scenario in the orange support zone for a one two setup and we could rally higher in wave C.
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That already takes us to the short-term bullish scenario. Short-term bullish means the wave four actually bottomed already here around the uh, end of March and we had an a-wave up, a b-wave down, and this is now a c-wave up, and I presented you with a setup for the one two setup in the white count. Um, I'm fairly neutral about which one it is that's playing out, but key is to understand the relevant levels and parameters and where risk is, uh, low and reward is high. And again as I said the market is respecting the parameters so we have to consider them both. This scenario suggests that one second we might have seen here a one two setup. Now I'm leaning towards the yellow count, okay, but still presented you with a support area which the price bounced from. So often say that even if the alternative scenario is playing out, um, or even if the primary is playing out but the alternative can be a good trade sometimes because it's all about positioning yourself close to the relevant pivots right. So yeah reaction to resistance reaction to support which means we are not really we don't really know more now about is it yellow or is it white but this move down looks more like a five-wave move to me. It's a bit interpretive of course so we want to have the facts so it takes a break below yesterday's low which formed at yeah basically 18 cents to confirm that the yellow count is playing out then we should follow through in wave C to the downside of wave three and then do the another four five pattern and reach 14 cents at least I would prefer that but as long as yesterday's low is holding for anybody who wants to play the white count I mean it's reasonable to set stop below the wave two low because this is it's not high probability probabilities are fairly balanced so it's not a great setup but still though it's a reasonable setup and a reasonable scenario to expect upside it also depends on what you know which one you believe I can present you with the with the objective levels and the invalidation points and the invalidation point for the white count yeah is 18 cents for the yellow count as it is the invalidation point is 20 21 cents pretty much 20.9 cents so if we break Above This high that formed on the 8th of April then it's likely that we're following the the white count so that's sort of uh for anything else you need a crystal ball you don't get more clarity out of this chart we have very clear parameters we can watch the resistance area was respected and support area that's essentially exactly what we want because then both you know both can be used for trading but it's now a matter of okay which direction does the market really choose and if we're looking for clues in the micro structure well for me this looks more like five wave move down so I'm leaning towards yellow but that doesn't really add you know many probabilities or it's not like you know it's a micro structure that that you know they are very fragile so yeah that's my update about do hope you like the update if you did please save our website, leave a comment and if you really like the content, please share it with your friends. If you want more blogs on Dogecoin crypto analysis, tell me in the comment section.
Dogecoin Crypto Analysis by Haider
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