Dogecoin price flashes top signal, DOGE to consolidate before resuming rally

Dogecoin price could see further consolidation before continuing its rally. A technical indicator suggests that DOGE has printed a local top, and the canine-themed token could retest critical support levels before making its next big move. 

Dogecoin price slightly overbought

Dogecoin price appears to have broken out of a symmetrical triangle pattern to the upside, suggesting a bullish outlook.

On the 12-hour chart, Dogecoin price sliced above the upper boundary of the governing chart pattern on August 6, which resulted in a surge of 31%. The prevailing symmetrical triangle pattern suggests that DOGE could rally 45%, reaching an upper target of $0.314, near the 200 twelve-hour Simple Moving Average (SMA).

However, the Momentum Reversal Indicator (MRI) printed an MRI top signal, hinting that Dogecoin price could see a trend reversal and retest crucial support levels in the near term.

Adding credence to the correction thesis is the Relative Strength Index (RSI), which suggests that Dogecoin price was slightly overbought.

Dogecoin price may find immediate support at the 27.2% Fibonacci retracement level at $0.249. Should DOGE be able to close above this line of defense, the token may see a higher chance of continuing its rally.

The next line of defense for Dogecoin price is at the 38.2% Fibonacci retracement level at $0.236. 

DOGE/USDT 12-hour chart

Further selling pressure may see DOGE collapse into the start of the demand barrier, at the 50% Fibonacci retracement level at $0.221 before testing the 100 twelve-hour SMA and the topside trend line of the symmetrical triangle.

Dogecoin price may identify further support at the 61.8% Fibonacci retracement level, coinciding with the 50 twelve-hour SMA at $0.206, should the buyers continue to struggle with lifting prices against the overpowering distribution of the sellers. 

If buying pressure prevails and sees DOGE price close above the 27.2% Fibonacci retracement level at $0.249, Dogecoin price could aim for a rally of 25% to $0.314, effecting the target given by the symmetrical triangle pattern.