• 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.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Dogecoin is a security and will be regulated, says Jim Cramer

The host of Mad Money, a CNBC show, issued a warning to Dogecoin holders. Cramer believes that Dogecoin is a security and it will be regulated soon. Analysts believe that the Dogecoin price could start an uptrend. 

More Dogecoin News

Shiba Inu price set to crash by 70% as critical support weakens

Shiba Inu (SHIB) price continues to be controlled by bears after the dead-cat bounce in stock markets yesterday evening. With the Nasdaq closing sharply lower, giving up earlier gains, cryptocurrencies are being dragged into a selloff on its coattails, and bearish headwinds  persist.

More Shiba Inu News

Chainlink price at make-or-break point while global markets tumble

Chainlink price has seen a massive collapse over the past five days, resulting in a retest of a crucial barrier. This downswing is not localized to the crypto markets and seems to originate on Wall Street after the Fed tightens the interest rates.

More Chainlink News

Bitcoin Weekly Forecast: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

More Bitcoin News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis