- Dogecoin price is still consolidating with lower highs and higher lows.
- DOGE price sees bulls defining an ascending trend line as support to go long.
- Expect consolidation to be poised for a bullish breakout as bulls already test upside resistance.
Dogecoin (DOGE) price was stuck in a downtrend from November until this week. With a shift in sentiment, DOGE bulls jumped on the opportunity to get in around $0.15 and pushed prices up to a first litmus test of potential resistances. Expect the consolidation to unfold in favor of bulls, with bulls targeting $0.35 to the upside.
A whopping 111% of gains could be in the making if crypto can keep tailwinds into Christmas
Dogecoin price has seen quite some market value evaporate throughout November, but a shift in sentiment looks to be set, with bulls breaking out of the downtrend. The consolidation phase is ongoing, with lower highs and higher lows between the blue ascending trend line and the red descending one. With that said, bulls already dipped their toes in the water to test resistance when a breakout would occur.
Expect the consolidation to continue unless some strong tailwinds emerge that could set price action above the 55-day and the 200-day Simple Moving Average (SMA) at $0.23 and $0.25. A close above the green ascending trend line around $0.27 would be the best scenario and trigger fresh buying volume from investors who want to get in the uptrend.
DOGE/USD weekly chart
From there, bulls have nothing in the way until $0.35 has a critical double top and the monthly R2 resistance just a few cents above. The risk to the downside is that with the litmus test, the 55-day SMA has already proven to be very strong, and the 200-day holds even more importance. As price action got rejected this week, the risk for a break of the blue ascending trend line is possible, which would see a test towards the monthly S2 at $0.10.
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
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.