- Dogecoin price continues to march higher, with no hint of a significant pullback coming.
- The weekly chart shows near-term resistance may create a bear trap.
- Bulls could trigger a massive short squeeze with DOGE spiking 100%.
Dogecoin price has picked up some excellent, bullish traction over the past two weeks. An expected gap-fill between the bodies of the weekly candlesticks and the weekly Tenkan-Sen is currently underway but may extend beyond the Tenkan-Sen.
Dogecoin price continues steady run higher, resistance up ahead
Dogecoin price is approaching a key resistance area that may surprise most market participants. There are three strong resistance zones ahead between $0.21 and $0.24 – the Tenkan-Sen, Kijun-Sen, and 2021 Volume Point Of Control. Many buyers are likely staying out near those price levels while short-sellers await an entry.
Buyers who wait and short-sellers who enter may both be on the wrong side of the trade – with the short-sellers suffering the most. The Composite Index is about to cross above both of its moving averages, indicating a bullish breakout would likely be sustained.
Additionally, the Relative Strength Index has maintained a strong support zone above the final oversold level in a bull market (50). Its current slope suggests that any successful crossover in the Composite Index would position the Relative Strength Index above the first oversold level (40).
Any current or new short positions in Dogecoin price will most definitely be under significant pressure. With longs entering after resistance has broken and short-sellers forced to liquidate or cover, a massive spike to weekly Senkou Span B at $0.38 is likely.