- Dogecoin price made a bullish breakout worth 18% of gains.
- DOGE’s breakout was short-lived with bulls closing out positions quickly and price collapsing back to the entry.
- Expect sideways action today with a pick-up in volatility after the FED meeting this evening.
Dogecoin (DOGE) price saw bulls dictating price action with an explosion higher as it broke above a red descending trend line which has been hugging price’s line of descending highs throughout December. Bulls failed to maintain upside momentum, however, andprice soon collapsed as traders sought to scalp profits quickly rather than stay in the trade longer term. One of the last main catalyst events on the calendar is scheduled for this evening when the FED will announce its monetary policy decision and expect some sideways price action before, followed by the risk of greater volatility following the meeting.
Dogecoin price could swing back to $0.26
Dogecoin price made a breakout above the $0.19 technical level, going back to September 21, respecting key levels to the upside and the downside along the way, on Tuesday. It is no surprise that the body of yesterday’s bullish candle started at the monthly S1 support level, near $0.16, and then grew towards $0.19. Above that level it only made a thin candle wick up to$0.22. The spike above the red descending trend line at $0.19 was caused by bears pulling their stops and orders out of the market, which caused a short squeeze higher.
DOGE price should have closed above $0.19 to keep the bullish momentum going. But as price action has already been rejected and is trading to the downside this morning, it’s an indication that bullish investors may have fled the scene after booking gains along the way. Expect price to range-trade between $0.19 and $0.16, prior to the FED decision later on today. The FOMC could wellact as a catalyst to more price action, with the communication on future monetary policy setting the tone for either a risk-on or risk-off mode in the last few trading weeks of the year.
DOGE/USD daily chart
In the case of a hawkish FED policy statement investors will probably pull their money out of stocks and cryptocurrencies leading to a sell-off. Such an outcome would push DOGE price back below $0.16 to either the green line at $0.14 or the monthly S2 around $0.10. Alternatively, if the FED commits to an accommodative policy, expect DOGE price action to quickly return to $0.22, where it will be poised to break above both the 55-day and the 200-day Simple Moving Average, and achieve an upside profit target at $0.26.
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.
Recommended Content
Editors’ Picks

Crypto Today: SHIB, Pi Network and DOGE emerge as top gainers as Bitcoin crosses $2T market cap
Bitcoin price hits $105,800, claiming the $2 trillion valuation milestone, after US and China confirmed a temporary trade agreement to lower tariffs. Shiba Inu, Pi Network and Dogecoin emerge as top gainers among the 20 main crypto assets.

Dogecoin price 40% surge tests crucial resistance amid easing trade tensions
Dogecoin (DOGE) rally gains bullish momentum to exchange hands at $0.25 at the time of writing on Monday. Since the tariff-triggered crash on April 7, the largest meme coin by market capitalization has edged higher on easing trade tensions.

Bitcoin Price Forecast: BTC edges closer to all-time high as US-China trade deal cheers markets
Bitcoin price stabilizes around $104,000 on Monday after rallying 10.44% the previous week. Risk-on gains traction as the US and China agree to major tariff reductions for 90 days.

Sui eyes new record high as network redefines AI, gaming and DeFi
Sui price tests above $4.00 for the first time since early February, upholding a broad-based bullish momentum. Sui is crafting a new ecosystem, redefining how builders and users interact with AI, Gaming and DeFi.

Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains
Bitcoin price stabilizes around $103,000 on Friday after rallying nearly 10% this week. Risk-on sentiment prevails as Trump announced a trade deal with the UK and ahead of the meeting with China this weekend.