Dogecoin (DOGE) The price dropped below the $0.18 key value area. Key resistance levels continue to drop and add pressure to any ‘upside’ momentum. DOGE investors or those considering investing in DOGE should pay attention to this important level.
If DOGE price fails to hold the key $0.18 level, it could face a major problem. Dogecoin (DOGE) price action tested levels below the last support zone at $0.18. The massive crypto market crash early Saturday morning sent Dogecoin in a free fall below key support but managed to recover most of the crash. As a result, Dogecoin still remains under threat of returning to single digits.
Dogecoin Price Drops Over 40%
Dogecoin price has been trading below weekly Tenkan-Sen and Kijun-Sen for the past five weeks. During this time, it tested the primary support level at $0.18 several times, but the sellers were unable to step in to push Dogecoin off the cliff. As time passed, near-term Ichimoku levels got closer and lower.
Higher levels for Dogecoin are extremely difficult at the moment and buyers willing to wait for a conservative entry seem to have a long wait.
A conservative buy entry is located at the $0.27 price level. If Dogecoin can capture a weekly candlestick at $0.27 or above, it means that it has closed above the weekly Tenkan-Sen, Kijun-Sen and 2021 Volume Control Point. The Chikou Span will still be below the candlesticks and the close will still be below the Cloud, but a close at or above $0.27 starts the bullish process.
Dogecoin price will need to close at at least $0.39 to fulfill all the requirements of the “Ideal Bullish Ichimoku Breakout” entry. While this may seem like a significant distance, Dogecoin has managed to make much bigger moves than expected in the past.
However, downside risks remain. The large, long, red rectangle in the graph represents the thinnest part of the 2021 Skin Profile. If Dogecoin captures a daily or weekly candlestick below the $0.175 price level, a “flash crash” to the next high volume node at $0.08 is very likely.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.