Even though it is too early to say that it has bottomed, we can clearly see a completed corrective pattern from the $0.75 all the way down to the $0.057 area.
I am counting the move down as a complex correction or more specifically a double zigzag. Surely, the last leg down has clear 5 waves into it which in any case would call for a reversal.
On top of that, we can see a decisive breakout of the corrective price channel accompanied with a strong increase in volume.
When it comes to the RSI we clearly see that the 40 level offered a strong support and that's exactly what we want to see for a bullish set up before a strong breakout. The breakout also pushed the RSI way above the 80 level.
Now, I am aware that there will be a pullback and a period of range to let the market breath. However considering:
1) The Elliot wave structure
2) Breakout of the corrective channel
3) High increase in volume
4) RSI holding bull range and breaking out above 80
I am quite confident to say that a long bull run for Dogecoin is on the way and we will see the $0.75 area broken through.
I am counting the move down as a complex correction or more specifically a double zigzag. Surely, the last leg down has clear 5 waves into it which in any case would call for a reversal.
On top of that, we can see a decisive breakout of the corrective price channel accompanied with a strong increase in volume.
When it comes to the RSI we clearly see that the 40 level offered a strong support and that's exactly what we want to see for a bullish set up before a strong breakout. The breakout also pushed the RSI way above the 80 level.
Now, I am aware that there will be a pullback and a period of range to let the market breath. However considering:
1) The Elliot wave structure
2) Breakout of the corrective channel
3) High increase in volume
4) RSI holding bull range and breaking out above 80
I am quite confident to say that a long bull run for Dogecoin is on the way and we will see the $0.75 area broken through.