Dogecoin price is alive and well-positioned for 35% gains
|- Dogecoin price sees the 55-day SMA underpins bullish action.
- DOGE price set to jump towards the 200-day SMA, playing the range.
- With that move, Dogecoin price would gain 35% of value to $0.1800.
Dogecoin (DOGE) price jumps as tailwinds in Europe overpower headwinds from the U.S., with bulls storming out of the gate and booking a three-day winning streak. The rally started on Easter Monday with the 55-day Simple Moving Average (SMA) and monthly pivot acting as entry levels, returning 10% of value to investors. In a range play towards the 200-day SMA, coinciding with the monthly R2 resistance, a 35% trade is a possible outcome for this rally.
DOGE price set to add $0.4 of appreciation
Dogecoin price is rallying into its third day today within a rally that started on Easter Monday, where intelligent bulls used the limited trading volume to ramp up price action quite quickly. With markets coming back in on Tuesday, plenty of investors jumped into the spotted trade and could still comfortably place their stops below the 55-day SMA and the monthly pivot. Additionally, the current dollar weakness is helping to open up some more room and enlarge any intraday gains.
DOGE price at first will face $0.1594, near $0.1600, with the monthly R1 resistance as the historical level as a double issue. From a trade management perspective, this would translate into a 1-to-1 trade setup with a 10% stop loss against 10% possible gains to be booked for investors entering at current levels around $0.1450. Should the dollar further back off and positive sentiment in the market pickup further, expect to see that trade turn into a 1-to-2.5 trade setup with a 10% stop loss and a possible 25% gain entering at current levels, with the profit target set at $0.18, which coincides with the monthly R2 and the 200-day SMA as double and robust resistance to the upside.
DOGE/USD daily chart
This evening TESLA(TSLA) will come out with earnings after the closing bell, one of the most significant components in the NASDAQ. Seeing the correlation between the NASDAQ and cryptocurrencies, another setback after the significant 25% drop from NETFLIX (NFLX) could trigger a panic trade in markets, with investors quickly unwinding their positions at any price. That would trigger a drop below the 55-day SMA towards $0.1242.
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