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Medium TermNew TradeFutures

DOGEDOGE Medium Term AI Analysis

DOGE Chart

Timeframe:

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DirectionBearish
Confidence65%
Risk Medium

Entry Zones

Optimal0.1025
Alternative0.1030

Stop Loss

0.1040

Take Profit Targets

TP10.0990
TP20.0980
TP30.0965

MARKET STRUCTURE: On the 4h timeframe, the trend is bullish with ADX at 29.67 indicating strength and Plus_DI (48.59) dominating Minus_DI (7.75). However, momentum indicators show overbought conditions: RSI at 83.78, MFI at 88.87, and Stoch RSI K/D at 100, suggesting a potential corrective pullback. Price is consolidating between 0.0985 (recent low) and 0.1035 (recent high) after a decline from higher levels around 0.117. The 1h timeframe confirms this consolidation with ADX at 21.07 and RSI neutral at 51.85.

SWING SETUP:

  • Direction: SHORT (for a corrective swing)
  • Entry Zone: 0.1020 - 0.1030
  • Ideal Entry: 0.1025 (near recent 1h high of 0.10203 and 4h resistance)
  • Setup Type: Correction in an uptrend due to overbought momentum
  • Confidence: Medium

POSITION MANAGEMENT:

  • Stop Loss: 0.1040 (placed above the 4h high of 0.10346 to allow for volatility)
  • Target 1: 0.0990 (conservative target within 3-5 days, near immediate support)
  • Target 2: 0.0980 (extended target within 7-10 days)
  • Target 3: 0.0965 (additional target near Bollinger middle band at 0.0963)
  • Risk/Reward: Approximately 1:2 (based on stop at 0.1040 and first target at 0.0990)

KEY LEVELS & SCENARIOS Resistance Levels (Upper Targets):

  • Level 1: 0.1020 - Recent 1h high and swing resistance → If price fails to break above 0.1020, expect a pullback towards support.
  • Level 2: 0.1035 - 4h high from recent candles → If price reaches 0.1035, selling pressure may increase due to overbought conditions.
  • Level 3: 0.1073 - 4h Bollinger upper band → If price surges to 0.1073, the bullish trend could resume, invalidating the short setup.

Support Levels (Lower Targets):

  • Level 1: 0.0990 - Immediate swing support from recent lows → If price holds at 0.0990, a bounce may occur, but overbought indicators favor a breakdown.
  • Level 2: 0.0985 - Recent 4h low → If price drops to 0.0985, expect consolidation or further decline.
  • Level 3: 0.0963 - 4h Bollinger middle band → If price breaks below 0.0963, the correction could extend, signaling a deeper pullback.

DIVERGENCES & PATTERNS: No clear bullish or bearish divergences detected in the RSI or MACD over the provided candles. However, the Stoch RSI on 4h is at 100 (overbought), aligning with high RSI and MFI, indicating exhaustion in upward momentum.

INVALIDATION & RISK FACTORS:

  • Setup Invalidation: The short setup is invalidated if price closes above 0.1040 on the 4h timeframe, as this would signal continued bullish momentum.
  • Warning Signs: Watch for a bullish reversal if price holds above 0.1020 with increasing volume (OBV trend is positive).
  • Alternative Scenario: If the bullish trend resumes without correction, a long entry near support levels (e.g., 0.0990) could be considered, but current data favors a short-term correction.

SIMPLE SUMMARY:

  • Overall Outlook: Bearish for a short-term correction due to overbought conditions on 4h indicators.
  • Quick Take: Overbought momentum signals present a swing short opportunity for a 3-10 day pullback towards support.