Time to look at the original “Meme Coin”, $DOGE. Once, almost reaching to $1.00, since the all time highs, has retraced back to the $0.05 – $0.06 range since late August 2022. Well the “Elon Musk effect” has taken effect on $DOGE once again to the upside reaching mid-August numbers……but is it time for the 🐕 to take a nap? Let’s zoom in:
I am looking for $DOGE to continue this downside based on a couple of factors here:
* Consistently broken upper Bollinger Bands during the upward trend with no short stops
* Based on the Fibonacci retracement tool, $DOGE not only hit the 0 point but also a massive rejection from a major resistance zone.
* Big engulfing bearish candle (blue arrow)
* Extreme over bought levels on the RSI (circled areas)
Waiting patiently for the 2nd candle to successfully close under the 0.382 line and enter the “Golden Area” of the Fibonacci retracement tool. From there a SHORT trade is inevitable and an easy landing spot would be for 0.06975 (red line) which is above the nearest short term support that it could bounce from.