A Crypto Analyst Assesses Whether Dogecoin Has Bottomed Out
A crypto analyst recently examined the price chart of Dogecoin (DOGE) to determine if the meme-inspired cryptocurrency has reached its lowest point after experiencing a significant decline this year. In a video posted on Dec. 11, the analyst from the More Crypto Online YouTube channel discussed potential signs of a bottom formation, although he couldn’t confirm the end of the crypto bear market.
Possible Elliott Wave Interpretations for Dogecoin’s Price Moves
The analyst presented two possible interpretations of Elliott Wave theory for Dogecoin’s recent price movements. One scenario suggests that the current rise could be a leading diagonal pattern, indicating the possibility of another pullback in a fourth wave. The alternative interpretation views the rally as the third wave of an impulsive sequence.
If the analyst models the advance as an impulsive third wave, he believes there may be more upside potential, with a potential target surpassing the $0.12 level. This level aligns with the 1.618 Fibonacci extension of waves one and two. However, a break below the $0.086 level would indicate a likely top is in place.
Remaining Cautiously Optimistic
The analyst emphasized that there are only three waves up at this point and acknowledged the presence of a bearish head and shoulders topping pattern if Dogecoin fails to push higher. He remains cautiously optimistic while monitoring both bullish and bearish scenarios as more price data becomes available.
Hot Take: Assessing Dogecoin’s Potential Bottom
A crypto analyst recently evaluated whether Dogecoin has reached its lowest point after experiencing a significant decline this year. By examining the price chart and considering different Elliott Wave interpretations, the analyst identified potential signs of a bottom formation. However, the analyst couldn’t confirm the end of the crypto bear market and remains cautious about the future of Dogecoin. With only three waves up and a bearish head and shoulders pattern still in play, it’s crucial to monitor both bullish and bearish scenarios as more price data unfolds.
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