Dogecoin price broke down from a symmetrical triangle pattern on March 22 and proceeded to decline for the next four days; however, volume was not showing a race to the exits. DOGE has since tested the upper trendline of the broken triangle on three days, and on two of those days, the altcoin briefly tested the 0.50 retracement level. The lack of staying power points to considerable overhead and a lack of commitment. 

Dogecoin price needs to overcome a critical Fibonacci level

On April 1, Elon Musk tweeted out that “SpaceX is going to put a literal Dogecoin on the literal moon,” and immediately the digital token roared higher, hitting $0.0725 before closing at $0.0616. It has turned out to be a short-lived event, and DOGE has since scrambled sideways with volatility. 

DOGE outlook is neutral but with a slight bearish tilt moving into the second half of this week. Downside support materializes at the new rising trendline from the March 25 low at $0.0535, followed by the March 25 low at $0.0483.

On the downside, some support may unfold at the 0.618 Fibonacci retracement level at $0.0428, but the noteworthy support is the 100-day simple moving average (SMA) confluence at $0.0409 with the February low at $0.0408. Below that level, traders should put on a parachute.

DOGE/USD daily chart

DOGE/USD daily chart

The IntoTheBlock’s In/Out of the Money Around Price (IOMAP) data refutes to some extent the neutral to bearish tilt. It indicates that bearish speculators will need to muster heavy selling pressure to break Dogecoin price below $0.0508.

Dogecoin IOMAP chart

Dogecoin IOMAP chart

In light of the IOMAP data, traders need to label their charts with the resistance levels to confirm whether a new rally is coming to fruition and where to increase risk.

First and foremost, DOGE needs to close above the 0.50 retracement level of the February decline on a daily basis. The next resistance is the 0.618 retracement level at $0.0738, followed more importantly by the highest weekly closing price at $0.0781.

If momentum is sustained, the February high at $0.0943 will be vulnerable, and the January high at $0.1004.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Uniswap price jumps to new all-time high and aims for more

Uniswap has seen a massive surge in the last three days, hitting a new all-time high and reaching $18.5 billion in market capitalization. Despite the significant rally, the digital asset seems poised for more.

More Uniswap News

Chiliz mulls 95% move to upside

Chiliz price reveals a tremendous bullish opportunity that could see it nearly double. However, a decisive breakout from a critical level will decide if CHZ bulls will seize this opportunity.

More Chiliz News

Zilliqa ready for 20% jump as PolyNetwork new details get released

Zilliqa price has been trading inside an ascending parallel channel since mid-February and continues to hold above a crucial support trendline. Just recently, Zilliqa's team released some new details on the bridge between ETH and ZIL, which could help the digital asset surge again.

More Zilliqa News

Dogecoin targets $0.245 after new wave of celebrity endorsements

Dogecoin receives fresh support from Mark Cuban and Guy Fieri. Dogecoin price surges 70% in less than 48 hours, hitting the middle line of an ascending parallel channel. A continuation of this bullish momentum could push DOGE up by 118% toward $0.245.

More Dogecoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: SEC commissioner cozies up to BTC ETF, on-chain metrics reset making way for volatile move

Bitcoin’s mainstream adoption has soared over the last couple of months, with institutions like Visa, Goldman Sachs, Morgan Stanley, and others dipping their toes in the BTC markets. Likewise, prices look primed to advance further despite the ongoing consolidation phase.

Read the weekly forecast

BTC

ETH

XRP