Josh Olszewicz, a crypto analyst, is raising alarms about an imminent Dogecoin price crash. He bases his analysis on the Ichimoku Cloud indicator, which offers insights into support and resistance levels, trend direction, and momentum. According to Olszewicz’s assessment, two significant technical occurrences are present in Dogecoin’s 1-day chart against the US dollar.
Expert Josh Olszewicz is issing a fresh warning about an imminent Dogecoin price drop based on his technical analysis. He’s relying on the Ichimoku Cloud indicator, which offers insights into support and resistance levels, momentum, and trend trends. According to Olszewicz’s assessment, there are two significant events occurring on the Dogecoin-to-USD 1-day chart: a bearish Tenkan-Sen (TK) line cross and a bearish Kumo breakout indicated by “X”. In simpler terms, the bearish TK cross implies that the short-term moving average is falling below the longer-term moving average, while the bearish Kumo breakout suggests that Dogecoin’s price has dipped below its key support level.
Bearish Signals For Dogecoin
In simpler terms, a “bearish Tenkan-Sen crossing Kijun-Sen” occurs when the Tenkan-Sen line, which represents the average of the latest highs and lows, falls below the Kijun-Sen line, or the longer-term average, within the Ichimoku Cloud chart setup. This is considered a bearish signal as it suggests downward price pressure.
In simpler terms, when the Tenkan-Line, derived from the average of the latest nine periods’ highest and lowest prices, falls below the Kijun-Line, calculated as the average of the last 26 periods’ highest and lowest prices, it indicates a potential downtrend.
The current short-term prices appear to be dropping below the average price level from the previous month, potentially signaling a continued decline.
The “Bearish Kumo Breakout” refers to a significant event in the Ichimoku Cloud indicator where the price breaks through the ‘Kumo’ line, which is formed by the Senkou Span A and Senkou Span B. This line, symbolizing a cloud on the chart, acts as a crucial level of support or resistance. When the price falls below this line, it indicates bearish sentiment in the market.
As a researcher studying the behavior of Dogecoin’s (DOGE) price movements according to Olszewicz’s analysis, I can explain that a ‘bearish Kumo breakout’ refers to the situation where the price has breached the cloud in a downward direction. This event is taken as a sign confirming the prevailing bearish trend. Additionally, with the current price being below the Kumo, it indicates a predominantly negative market sentiment towards DOGE. The Kumo, in this context, functions as a barrier to any potential price increase.
As a crypto investor looking at the chart by Olszewicz, I see DOGE currently trading around $0.15. The moving averages, represented by the cloud, hover above and below the price lines. When the cloud turns green, it suggests a bullish outlook for the future. However, with the price dipping below both the Tenkan-Sen and Kijun-Sen lines, which make up the cloud, I’m currently observing bearish market conditions.
A 40% Price Crash Looming?
Olszewicz’s DOGE price analysis carries significant importance, as he had previously identified the potential for a Head and Shoulders (H&S) pattern in the DOGE/USD 12-hour chart. According to NewsBTC’s report, this ominous formation could soon be confirmed.
As a crypto investor, I closely monitor the technical analysis of Dogecoin’s price chart. The current formation exhibits two prominent shoulders on either side of a distinct head, with the neckline around $0.14 serving as a crucial point of resistance. A breach below this level could signal the realization of the Head and Shoulders (H&S) pattern’s prophecy. Consequently, sellers might be encouraged to enter the market, potentially leading Dogecoin’s price towards the $0.10 to $0.09 range.
The potential target zone for this area corresponds with the 1.618 and 2.0 Fibonacci extensions, implying a possible 40% drop in price from the neckline if these levels are reached. Although the pattern has not been definitively established, as the price remains above the critical $0.14 support, its emergence acts as a warning sign for investors.
As a researcher studying the Dogecoin market, I’ve noticed that Olszewicz’s technical analysis points to a bearish scenario for the cryptocurrency. Specifically, the confluence of a bearish TK cross and a bearish Kumo breakout strengthens this outlook. Investors should remain vigilant as a significant drop below the $0.14 level could confirm the bearish view and potentially trigger a more substantial decline.
At press time, DOGE traded at $0.1413.
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2024-04-29 10:52