A DOGE Breakout Is Predicted by the Wyckoff Method [Premium Analysis]

2020-1-22 01:18

The DOGE price is possibly in a Wyckoff Accumulation Process. The current movement resembles the last point of support, after which the price could target the first resistance level at 35 satoshis.

DOGE Highlights The DOGE price could be in a Wyckoff Accumulation Period. It is trading below the 100- and 200-day moving averages. DOGE is following a descending resistance line. The RSI supports a price increase.

Full-time trader Bagsy (@imBagsy) tweeted out a DOGE price chart, suggesting that it is in the process of an Wyckoff Accumulation.

$DOGE Wyckoff Accumulation?

You tell me. pic.twitter.com/fm9Kl2SsxC

— Bagsy (@imBagsy) January 20, 2020

Let’s take a closer look at the price movement and see if this hypothesis is correct.

Wyckoff Accumulation

We have laid out the phases without the acronyms in order to make the graph easier to understand. The main resistance and support areas are found at 35 and 24 satoshis, respectively.

The current DOGE price movement is likely the Last Point of Support (LPS). A breakout above 35 satoshis would be the Show Of Strength (SOS), after which the price is likely to accelerate its rate of increase as it reaches new highs.

However, prior to this possible breakout, the price could make a lower low below 24 satoshis, which would act as the Spring prior to the upward move.

However, this movement is not yet confirmed. In order for the price to do so, DOGE has to move above the descending resistance line that has been in place since October 19 and the 100- & 200-day moving averages (MA).

While the aforementioned MAs have made a bullish cross, the price is trading below both. A flip of these MAs and the descending resistance line could be seen as confirmation that the DOGE price is indeed in the Wyckoff Accumulation process and will soon reach the SOS phase.

RSI Failure Swing Bottom

A pattern created in the RSI supports this price increase. The indicator generated bullish divergence since December 23, 2019. In addition, the recent RSI high of 65 was higher than that of January 5, successfully completing a failure swing bottom.

In addition, the daily RSI is above the 50-line, possibly suggesting that a trend reversal is incoming.

To conclude, it is possible that the DOGE price is in the midst of a Wyckoff Accumulation process, which if true would soon take it to 34 satoshis and beyond. In order to confirm this movement, DOGE has to break out above the current descending resistance line and resistance provided by the moving averages.

The post A DOGE Breakout Is Predicted by the Wyckoff Method [Premium Analysis] appeared first on BeInCrypto.

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