Sheldon McIntyre, CMT
FXStreet
- Dogecoin price flirting with the 0.50 retracement level, but no staying power.
- Hype surrounding the meme coin continues to fade.
- IOMAP data shows solid support from $0.0508 to $0.0598.
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
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
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.
Latest Crypto News & Analysis
Editors’ Picks
Ethereum price on cusp of massive breakout if key level holds
Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.
VeChain consolidates as clear trend fails to establish
VeChain price has been on a tear since the start of 2020 and shows no sign of slowing down despite the recent market crash. Now, VET awaits a volatile breakout from its consolidation to establish a clear trend.
Chainlink could be the first to recover amid market crash
-637336005550289133_XtraSmall.jpg)
Chainlink, like the rest of the market, has experienced a significant correction in the past four days However, the digital asset continues to hold above a crucial support level and on-chain metrics show it could be one of the strongest during this correction.
Cardano on-chain metrics reveal paradigm shift in nature of investors
Cardano price shows the loss of momentum from the buyers’ end, which has resulted in a breakdown of a critical support level. Now, a continuation of this momentum could ensue as blockchain data reveals a grim future for ADA.
Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs
Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.