DOGEUSD The 1W RSI hit the cyclical Buy Zone!!

Dogecoin has been correcting on Lower Highs and Lower Lows ever since the May 2021 All Time High (ATH). Trading below its 1W MA50 (blue trend-line) for 3.5 months, it is obvious that this was its new Bear Cycle. The first indicator though that this may be coming to an end has just flashed.

That is the 1W RSI which entered its Support Zone of 38.000 - 33.000 for the first time since the COVID fueled March 2020 market crash. As this chart shows, every time the RSI hit that Zone, DOGE rebounded and in April 2015 and January 2019 in particular, that was the bottom of those Bear Cycles.

The last Bear Cycle bottom though was made almost on the 1W MA200 (orange trend-line) and marginally below the 1.0 Fibonacci level. Right now the 1W MA200 is at 0.06387 and rising, but the 2.0 is below that already (0.05530). If the current Cycle bottoms upon completing a -90% correction as in 2019, then the bottom should be around 0.0700. Unless Doge drops that much in the next 2-3 months, it is likely that the 1W MA200 will be higher than that, so it will invalidate this cyclical pattern. As a result, since the 1W RSI flashed the first long-term buy signal, investors could start accumulating Doge now and depending on one's risk tolerance add again upon contact with the 1W MA200.

As for the next High, if the plus one .618 Fibonacci extension sequence continues, then the Top of the next Bull Cycle should be above the 3.618 Fib extension i.e. above $9.50. It is obvious that the risk/ reward ratio from the current levels is great and the buy signal that the 1W RSI just flushed, more than good enough to take.


--------------------------------------------------------------------------------------------------------

Please like, subscribe and share your ideas and charts with the community!

--------------------------------------------------------------------------------------------------------