To have an idea about the technical part, as usual, it’s ideal to check out Higher Time Frame. Starting from the Weekly Time frame, the price of DOGE is quite bearish and is breaking structures to the downside. Price is very precisely following the Lower Low & Lower High pattern. Right now price on Weekly has broken structure and has made a Lower Low. Now potentially after every Lower Low, Lower High is formed. So, anticipating a Lower High gives us Bullish bias to some extent.
Moving down to the Daily Time frame, the price action of DOGE is very supportive of the bullish bias. This is because of the bullish evidence it is giving at the moment. The previous Low which was sitting at $0.1313 on the 4th of December, the price on the 22nd of January took it low. This means that the liquidity which was sitting below that has been probably taken out which supports the bullish bias as the price has the necessary fuel is needed for any sort of impulse.
Lower Time Frames – Dogecoin (DOGE)
Now moving down to the 4 Hour Time Frame, there are a few confluences that are worth considering. First thing, the structure edge is to the upside, as the price is breaking structures to the topside. The Order Block which was formed after the first structure shift to the topside was mitigated while the second one to date remains unmitigated. Now price of DOGE is actually in a consolidation phase and liquidity is being engineered on both sides. It’s very possible that price might manipulate to the downside. Then the distribution move can take place to the upside which aligns with our HTF. Now talking about the invalidation point.
Possible Reaction Zones
If the price of DOGE in case breaks the level of $0.1256, then it’s very possible that all of these scenarios don’t even take place as the structural shift will be observed and only shorts would be preferred. Talking about the targets, the level of $0.11647 is a very great one as that’s an unmitigated Order Block from where the price may show the reaction to some extent.
This weekly to 4-hour bias all aligns with the Btc movement as well. As on Btc the bearish momentum, for now, seems to have been lost. Meaning that buys of DOGE are kind of preferred which influences the buys in these alts as well. BTC movement is very important before considering only the technicals of each other coin.
