Dogecoin Growth Incoming!
As the United States gears up to elect its next president on Tuesday, market participants are closely watching how the outcome could impact various sectors, including cryptocurrencies.
Historically, the crypto market tends to move along a long-term trajectory, largely unaffected by the current administration. However, in the short term, presidential elections often bring about significant volatility.
While this may sound concerning, traders who employ effective risk management strategies can potentially capitalize on these market fluctuations.
4-hour time frame analysis
DOGEUSD - 4 Hour Time Frame
Analyzing the four-hour chart of Dogecoin reveals bullish market structures that set the stage for potential buying opportunities. As part of a healthy price evolution, corrective movements are expected, which can present traders with attractive entry points.
Recently, Dogecoin's price experienced a decline, dipping into what is known as the Discount Zone, highlighted by the green 0.5% Fibonacci retracement level on the chart.
Dogecoin price target
Buying during a market correction without waiting for confirmation can be risky. Therefore, we have identified a setup with a higher probability of success, based on price action and confirmed indicators.
DOGEUSD - 1 Day Time Frame
The price has closed above the midpoint of a major resistance zone on the four-hour chart. This signal suggests a strong potential for upward momentum.
To manage risk, a Stop Loss order could be placed below the nearest internal low, as shown on the accompanying chart. Additionally, sound money management practices are crucial.
If the price falls back below the lower boundary of the resistance zone, traders may consider closing part of the position to minimize losses.
For profit-taking, traders can hold the position until the price reaches one of the Buy-Side Liquidity levels. These levels represent strategic exit points, where market participants often aim to secure gains.
By following these strategies and practicing disciplined risk management, traders can make the most of the opportunities presented by the upcoming U.S. presidential election.
