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Should you buy the dip in Doge coin on Wednesday?

November 24, 2021 By Ansh Rathod

    Dogecoin (DOGE/USD) has fallen by over 25% this month and has now reached important support, a reversal could be seen very soon and this could be a great time to enter Doge. Doge has been continuously falling since the high of $0.73 it hit in May. Doge has formed a symmetrical triangle and is at the supporting trendline which is a strong zone of reversal, however, investors must be cautious as Doge is a very volatile coin thus a stop-loss must be kept.

A closer look at the charts-

  • Doge has formed a symmetrical triangle and is now at the supporting trendline, a reversal was seen in October when it bounced from the trendline. The same could happen again however investors must wait for a clear reversal before entering.

  • Doge has formed a large red candle on Wednesday and was trading over 4% lower, this is not a great sign and could mean that Doge could break down soon. Thus investors should avoid any long positions until a bullish candle is formed.

  • A long entry should only be taken above the trendline as Doge is looking very weak below the supporting trendline.

  • An entry can be taken once a clear reversal is seen, and investors can also wait for Doge to break the 50-day moving average. Investors must be careful as Doge can still break down from the trendline thus no long entries should be taken thus investors should be patient and wait for the right time.

  • A slight bullish divergence in the RSI can also be seen which is hinting towards a reversal.

  • A target of $0.285 can be set if a reversal is seen, and a possible could also be seen.

  • A stop-loss can be set below the zone at $0.199.