- Dogecoin price is trading inside an ascending parallel channel.
- The MRI’s State Trend Resistance coinciding with the setup’s middle line at $0.060 will deter any upside move.
- Transactional data reveals that a breakdown of the $0.056 demand barrier will help the bearish outlook.
The Dogecoin price is stuck between two crucial barriers that have prevented it from establishing a clear trend.
Dogecoin price awaits spike in momentum
The Dogecoin price has set up three higher highs and higher lows since February 20. An ascending parallel channel forms when these swing points are joined using trend lines. As long as DOGE trades within the technical formation confines, a bearish outlook can be avoided.
However, if bulls fail to slice through the immediate resistance at $0.060, a 13% downswing toward the lower trend line at $0.051 seems likely. Interestingly, this level coincides with the 23.6% Fibonacci retracement level.
The Dogecoin price will be in trouble if it breaches the Momentum Reversal Indicator’s (MRI) breakout line at $0.047. In this case, a 13% correction toward the demand barrier at $0.040 is possible.
DOGE/USDT 12-hour chart
Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, 140,000 addresses that hold roughly 9.4 billion DOGE tokens at $0.056 will cushion short-term bearish momentum.
Therefore, the bears need to summon a massive spike in selling pressure that will lead to a breakdown of this level to have any chances of heading toward the lower boundary of the ascending parallel channel at $0.051.
Dogecoin IOMAP chart
IOMAP cohorts reveal that 16,000 addresses that purchased nearly 7 billion DOGE at an average price of $0.062 are “Out of the Money” and will deter upward moves. However, a decisive close above this level will result in a 13% upswing to MRI’s State Trend Resistance at $0.067.
The bearish thesis will face invalidation if the 61.8% Fibonacci retracement level at $0.070 is conquered. This move will open up the Dogecoin price for further upswings.
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.
Follow us on Telegram
Stay updated of all the news
Cardano price coils up for a 15% rally as 6.61 million ADA net flow value comes in
Cardano (ADA) price appears to be ready to finally break out from the consolidation after flipping above a crucial roadblock. The optimism comes as the ADA token recorded a massive spike in large transactions nearing 35,000 in 48 hours.
Ripple price eyes 25% breakout as XRP community anticipates June 13
Ripple price is coiling up for a breakout amid revitalized optimism in the community, counting the days to June 13. XRP could explode 25% to new range highs, levels last seen in May 2022. Invalidation of this bullish outlook will occur upon a daily candlestick close below $0.49.
Shiba Inu tests 50-MA despite whales accumulating billions of SHIB tokens
Shiba Inu (SHIB) price has favored the bulls for a week now, extending its gains for the second consecutive session. This comes as sentiment across the crypto market continues to improve, initiated by the crypto king, Bitcoin (BTC).
Ethereum price at catch-22, pressed between this bullish outlook and a waning of momentum
Ethereum (ETH) price is trading with a bullish bias, following Bitcoin's (BTC) heels. The Proof-of-Stake (PoS) token is up a staggering 60% in 2023, which is no mean feat considering the gloomy outlook in the market, characterized by the extended bear market.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.