• 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.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why

Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 lows. Polygon's MATIC price could justify the old traders saying that "early buys quickly die".

More Polygon news

Is the Safemoon price warning investors of a future rug pull?

Is the Safemoon price warning investors of a future rug pull?

Safemoon price shows signs of failure. More decline is expected unless the bulls can hurdle the descending trendline. Safemoon price could experience more decline as the bulls are being tested at the psychological $0.0005000 level. 

More SafeMoon news

Is Terra’s LUNA price preparing to double?

Is Terra’s LUNA price preparing to double?

Terra’s LUNA price sees compression of 8- and 21-day simple moving averages. LUNA price volume has tapered out considerably amidst June’s downtrend. Invalidation of the uptrend is a breach below $1.60.

More Terra news

Bitcoin Price Prediction: A falling knife or Michael Saylors' sword in stone?

Bitcoin Price Prediction: A falling knife or Michael Saylors' sword in stone?

Bitcoin price shows concerning signals as the bears have recently rejected the $22,000 ascension. It appears smart money wants to negotiate for the peer-to-peer digital currency at a much lower price.

More Bitcoin news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP