• Dogecoin price action continues to recover from ten-month lows.
  • DOGE could outperform several major cryptocurrencies on a confirmed breakout.
  • There are risks to the downside, but the threat is limited.

Dogecoin price is nearing an important bullish breakout level that could trigger a massive upswing this weekend. It would be the strongest bullish signal in almost a year if confirmed.

Dogecoin price set to return to the $0.25 value area

From an Ichimoku perspective, Dogecoin price action is very close to confirming an Ideal Bullish Ichimoku Breakout. The only condition missing is a daily candlestick close above the Ichimoku Cloud.

On May 31, 2022, the price level that DOGE needed to close at to confirm an Ideal Bullish Ichimoku Breakout was $0.16 – but that threshold has now dropped. The threshold for Saturday is daily close at or above $0.146, and by Sunday, it drops even further to $0.14.

DOGE/USD Daily Ichimoku Kinko Hyo Chart

The daily Ichimoku chart compliments a hypothetical long opportunity on the $0.01/3-box reversal Point and Figure chart for Dogecoin price. The long idea is a buy stop order at $0.17, a stop loss at $0.13, and a profit target at $0.29.

The entry at $0.17, if triggered, would confirm the breakout above a double-top and simultaneously establish a Bear Trap pattern in Point and Figure analysis. That the Bear Trap forms at the ultimate swing low of the current downtrend gives the bullish breakout a high probability of succeeding and sustaining for a long time.

DOGE/USD $0.01/3-box Reversal Point and Figure Chart

The hypothetical long opportunity for Dogecoin price represents a 3:1 reward for the risk. A three-box trailing stop would help protect any profit made post entry. Buyers should anticipate significant selling pressure against the critical psychological price level of $0.25 before moving towards the projected profit target of $0.29.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP