DOGE Trade Signal

DOGE Short Setup Analysis

Currently, I’m observing the price action of DOGE and identifying a potential short opportunity. The overall trend appears to be bearish, and I’m anticipating a move to lower levels. Here’s a detailed breakdown of the setup:

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Market Context

DOGE has been showing signs of weakness, with the price struggling to break key resistance levels. The recent price action suggests a possible continuation of the downtrend, especially if the market fails to hold critical support zones. The bearish momentum is further supported by the lack of significant buying pressure, making this an ideal scenario for a short trade.

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Entry Point

I’m looking to enter a short position at 0.27596. This level aligns with a recent resistance zone, which could act as a rejection point for further downside movement. The entry is strategically placed to capitalize on the anticipated bearish momentum.

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Stop Loss (SL)

To manage risk, the stop loss is set at 0.28121. This level is just above the recent swing high, ensuring that the trade is protected in case of a sudden bullish reversal. The tight stop loss helps maintain a favorable risk-reward ratio.

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Profit Targets

The trade is structured with four incremental profit targets to allow for partial take-profits and risk management:

1. Target 1: 0.27166 – This is the first support level, where I expect some initial selling pressure to take effect.

2. Target 2: 0.26702 – A stronger support zone that could see increased selling momentum if broken.

3. Target 3: 0.26053 – This level represents a key psychological and technical support area, likely to attract more sellers.

4. Target 4: 0.25545 – The final target, which aligns with a major support level and could mark the end of the current bearish move.

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Risk Management

The risk-reward ratio for this setup is favorable, with the potential for significant downside movement outweighing the risk of a stop-loss hit. By scaling out at each target, I can lock in profits while allowing the trade to run if the bearish momentum continues.

Edit: 18.02.2025

Doge Reached All Targets