Renowned crypto analyst Josh Olszewicz is once again sounding the alarm for a potential Dogecoin price crash. This warning is based on a detailed analysis utilizing the powerful Ichimoku Cloud indicator, which offers valuable insights into support/resistance levels, momentum, and trend direction.
Key Bearish Signals For Dogecoin
Olszewicz’s analysis highlights two critical technical indicators on the 1-day (1D) chart of DOGE against the US dollar (DOGE/USD). He pointed out the “1D DOGE: bearish TK cross + bearish Kumo breakout” as significant warning signs.
The bearish TK cross signifies a negative crossover between the Tenkan-Sen and Kijun-Sen lines within the Ichimoku Cloud framework. This indicates a bearish trend in the making.
Another concerning sign is the Bearish Kumo breakout, where the price breaks below the cloud in a downward direction, affirming a bearish sentiment. This breakout suggests that the cloud now acts as a resistant barrier, impeding any potential upward movement for DOGE.
Olszewicz’s chart reveals DOGE trading at $0.15, with the cloud displaying a mix of green and red, signaling potential future bullishness but current bearish conditions.
Is a 40% Price Plunge on the Horizon?
This aligns with Olszewicz’s previous observations regarding a potential Head and Shoulders (H&S) formation on the DOGE/USD 12-hour chart, a pattern that could lead to a significant downturn if confirmed.
If Dogecoin’s price dips below the critical $0.14 support level, triggering the H&S pattern, a sell-off towards the $0.10 to $0.09 range could ensue, representing a potential 40% price crash. While this pattern is not yet confirmed, it serves as a cautionary signal for investors.
With the convergence of bearish signals in Olszewicz’s analysis, vigilance is advised, especially around the $0.14 mark. Breaking below this level could validate the bearish outlook and pave the way for the anticipated decline.
Presently, DOGE is trading at $0.1413, highlighting the need for cautious observation in the rapidly evolving cryptocurrency market.
This insightful analysis serves as a cautionary tale for traders and investors in the volatile crypto market. Remember, investing comes with risks, and it is essential to conduct thorough research and analysis before making any financial decisions.
