Alarm Bells Ring For Dogecoin: Bearish Signal Points To 40% Crash

Dogecoin Price Crash Warning: Technical Analysis Points to Bearish Trend

Crypto analyst Josh Olszewicz issues a warning of an impending Dogecoin price crash. His analysis relies on the Ichimoku Cloud indicator, which provides insights into support/resistance levels, momentum, and trend direction.

Bearish Signals for Dogecoin

Olszewicz identifies two specific technical phenomena on the 1-day (1D) chart of DOGE against the US dollar (DOGE/USD):

1. Bearish TK Cross: The bearish crossover between the Tenkan-Sen (conversion line) and the Kijun-Sen (baseline) within the Ichimoku Cloud system indicates that short-term prices are falling below the base level of prices over the past month, suggesting further downward movement.

2. Bearish Kumo Breakout: The 'Kumo' (cloud) represents a key area on the chart that can act as support or resistance. A 'bearish Kumo breakout' implies that the price has broken through the cloud downwards, confirming a bearish trend. The price below the Kumo indicates negative market sentiment, with the Kumo now likely acting as resistance to upward price movement.

40% Price Crash Looming?

These technical signals reinforce Olszewicz's previous DOGE price analysis, which identified a potential Head and Shoulders (H&S) formation on the 12-hour chart. If Dogecoin's price breaks below $0.14, the H&S pattern could be validated, leading to a potential sell-off towards $0.10 to $0.09. This target area aligns with Fibonacci extension levels, suggesting a price crash of around 40%.

Cautionary Signal

While the H&S pattern has not yet been confirmed, the presence of the bearish TK cross and Kumo breakout serves as a cautionary signal for the market. Market participants should closely monitor the $0.14 level, as a break below could trigger the anticipated decline.

At press time, DOGE traded at $0.1413.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Investing carries risks, and you should always conduct your own research before making any investment decisions.