Dogecoin has dropped a lot since May 2021 from $0.7. to $0.11. Recently, with the bounce of the entire crypto market, Dogecoin has broken the resistance line but immediately faced the selling pressure and traders are hence doubting whether it is a false breakout. However, if we regard it as a standard breakout-retest pattern, it will make sense and provide us reasons to buy dogecoin.
Bears could argue this might be indeed a false breakout. However, if you observe the volume, you can notice that the volume traded on the (false) breakout day is not really that significant compared to one year ago . The bounce after the 1-year -bear market should not be like that (that low volume). What it implies is 1. the selling pressure is weakening; 2. there could be much more buying power emerged in the upcoming weeks.
I suggest a long position with target $0.2514 (0.236 fib level) and stop loss slightly below the current support level that we are testing. It is a very high risk/reward ratio trades. Enjoy it!
Bears could argue this might be indeed a false breakout. However, if you observe the volume, you can notice that the volume traded on the (false) breakout day is not really that significant compared to one year ago . The bounce after the 1-year -bear market should not be like that (that low volume). What it implies is 1. the selling pressure is weakening; 2. there could be much more buying power emerged in the upcoming weeks.
I suggest a long position with target $0.2514 (0.236 fib level) and stop loss slightly below the current support level that we are testing. It is a very high risk/reward ratio trades. Enjoy it!