- Dogecoin price prepped for a hefty price spike after it returns to $0.20
- Bullish divergence is present, suggesting a downside move is likely to terminate.
- Imperative that Dogecoin not close below the $0.15 value area.
Dogecoin price continues to trade at the upper bounds of a capitulation zone – something it has done since the beginning of December. Despite the bearish nature of Dogecoin’s price action, bears have been unable or unwilling to drive DOGE lower.
Dogecoin price needs to hit $0.20 before it can rally to $0.35
Dogecoin price has two primary scenarios coming up that could see it repeat the price action it experienced in early 2021. The first is a hypothetical long entry at $0.20, with a stop loss at $0.18 and a profit target at $0.35. This trade option would complete two objectives. First, it would confirm the breakout above a double-top. Second, and most important, it would convert Dogecoin back into a bull market after crossing above the current bear market trend line.
The hypothetical long setup is invalidated if Dogecoin price return to $0.155 before the entry. However, if a fall to $0.155 occurs, a capitulation move is undoubtedly on the horizon, with a possible move and flash-crash to the $0.09 value area.
DOGE/USDT $0.005/3-box Reversal Point and Figure Chart
However, Dogecoin could develop a nasty-looking bear trap by moving lower. If Dogecoin were to fall to $0.15, a Bullish Shakeout setup would occur. The Bullish Shakeout is a rare and powerful reversal pattern that terminates downtrends and corrective moves. Confirmation of that move would need to be established to ensure that a probable setup would be appropriate.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.