Share:
  • 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

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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson, the founder of Cardano, engaged in a debate with the XRP community over the rumors of ConsenSys founder, Joseph Lubin, bribing the US financial regulator.

More Cardano News

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin (BTC) price has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever.

More Bitcoin News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem is set to experience a surge in activity from decentralized finance (DeFi) projects that offer users airdrops in the following months, according to a report from crypto market intelligence company Messari. 

More Solana News

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders. 

More Cryptocurrencies News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP