In the ever-evolving world of cryptocurrency, Dogecoin, often dubbed as the ‘meme coin’, is showing signs of stirring from its slumber. The digital asset, which has been in the accumulation stage for some time now, is poised to make significant strides, provided it maintains its position in the green zone. This is a crucial phase that requires investors to exercise patience, as the potential rewards could be substantial.
Dogecoin, the cryptocurrency that started as a meme, is currently trading at $0.06603, with a 24-hour trading volume of $204,496,075.35. It holds the 8th position in the global cryptocurrency market rankings, with a market cap of $9,245,318,344.72. The circulating supply of Dogecoin is 139,923,346,384.71 DOGE. Despite its origins as a joke, Dogecoin has proven its resilience and has become a significant player in the crypto market. Its performance and widespread adoption underscore the unpredictable and dynamic nature of the cryptocurrency market.
However, like all financial markets, the cryptocurrency landscape is not without its risks. A key violation condition to watch for is if Dogecoin closes a daily candle below the green zone. Such a move could signal a shift towards a bearish trend, underscoring the importance of vigilant monitoring and strategic decision-making in this volatile market.
Based on our analysis, it would be premature to declare Dogecoin as “dead”. The cryptocurrency is currently in an accumulation stage, which is often a period of relative quiet before a potential price increase. While some may question if Dogecoin is dead, current analysis suggests that this sleeping giant may just be waking up. As always, in the world of cryptocurrency, only time will tell.
Chainlink (LINK): Navigating the Waves Towards a Potential Uptrend?
Chainlink (LINK) is currently showing some interesting patterns that warrant attention. After a period of decline, LINK has seen a reversal back to the upside. However, it’s important to note that this doesn’t necessarily signal a bullish trend just yet. A key level to watch is the $6 mark. If LINK can break above this previous support level and sustain its position, it could imply a less bearish outlook.
Currently, we are witnessing a three-wave move to the upside. However, for a clear signal of a trend reversal, a five-wave move is needed. The third wave has reached the 2.382 extension, which, contrary to popular belief, is not necessarily bullish. If the third wave extends too much, it increases the risk of maintaining a three-wave structure due to quick exhaustion, which could trigger more selling and potentially lead to a pattern breakdown.
What we ideally need to see is a fourth wave support, followed by a fifth wave to the upside. The break above resistance could now help the price to retest previous resistance at $6 as support and then push higher in one more wave. A healthy fourth wave would be desirable, not just a weak one, but rather an extended one, either in terms of price correction or time-wise.
If we get a five-wave move up, we can then count a possible wave one reversal pattern, the first wave of an uptrend. This would then need to hold a subsequent pullback in a wave 2, which would consist of an ABC structure. This is the current outlook for LINK, and it’s crucial to monitor these patterns closely.
However, it’s important to remember that there is still a lot of downside pressure and increased risk of breaking down. LINK is approaching the next resistance area around the $6.80 level, and at some point, we should see the wave four pullback.
In the bigger picture, LINK needs to break above $9.50 to take out this significant resistance area, which was defined with all the peaks in November, August, and June 2022. There’s a long way to go, but these so-called one-two setups are among the best in terms of reward to risk ratio.
While Chainlink has some hurdles to overcome, the current patterns suggest that it could be gearing up for a potential upward move. As always, vigilance and strategic decision-making are key in this volatile market.
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