This Dogecoin, DOGEUSDT, chart is really strong based on technical analysis.
For each altcoin chart we focus mainly on a set of signals and we vary this set of signals depending on the market cycle.
While at one point we are looking at moving averages and the RSI, at a later time we look at the MACD and candlesticks.
If we are looking for resistance levels and support, we will be using Elliot Wave and Fibonacci numbers, just to give you an idea of how the analyzes you are reading now can drastically change in the months to come.
In this daily Dogecoin chart, we have…
- The falling wedge pattern that has already broken bullish.
- The higher low short-term, clearly marked on the chart.
- Here MA200 is present as a black line and Dogecoin is trading above this level. This means there is potential for long-term growth as long as the current price/candle stay above this line/indicator.
- Full green candle. Anytime you see a full green candle, this is good news.
- The overall market is also going bullish. Bitcoin is going bullish, even the stock market is experiencing a type of recovery. This can also be taken into account when reading a chart.
External news and events can also be considered when reading a chart.
Normally each chart is different, separate and we have to consider the potential based on the chart itself but, the bigger picture can be helpful in periods of doubts or to spot trend-reversals.
Once everything is moving, it is pretty easy to guess right but before the majority of the market responds, we have to use all tools available.
We see that Genesis mining, a big bitcoin/cryptocurrency mining company, have gone bankrupt very recently, a piece of bad news for the cryptocurrency industry yet, bitcoin and the altcoins moved ahead, remain strong and are set to grow.
When negative news hit the market but no negative price action shows up, this is a strong bullish signal and can be added to any chart.
The Dogecoin chart on the daily timeframe as of 22-Jan-2023 looks strongly bullish.
For this bullish bias to be negated, invalidated, we would have to see a drop and full session close below $0.06600 which is the 30-Dec-2022 low. All trading above this level and the bullish potential remains intact.
Short-term, if DOGEUSDT moves below EMA10, EMA50 and EMA100, these levels now matching a price range of $0.08410 – $0.08103, it would signal that the bears have the upper-hand short-term.
This is just some of the information that can be extracted from this chart, there is so much more.
If you change the timeframe to weekly or monthly.
If you activate additional indicators, there are thousands and thousands of indicators available, tons of new information shows up.
We can predict the future with technical analysis, if we dive deep enough.
When I say “we”, I mean you and me looking together at these charts.
Namaste.
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