• Dogecoin price has failed to stay above crucial support levels, hinting at overwhelming bearish pressure.
  • The short-term selling pressure has pushed DOGE back into a symmetrical triangle consolidation.
  • A reversal in bullish outlook is possible if the meme coin slices through a crucial demand barrier at $0.047.

The Dogecoin price saw a massive spike on April 1, when Elon Musk tweeted about DOGE. However, the quick run-up has retraced almost all of its surge.

Dogecoin price struggles to stay afloat

On the 12-hour chart, the Dogecoin price has formed a symmetrical triangle consolidation since February 18. Trend lines drawn along the lower highs and higher lows show a converging trend, resulting from aggressive camps trying to control the asset.

This setup forecasts a 35% move, determined by measuring the pivot high and low distance and adding it to the breakout point. 

Since this technical formation has no inherent bias, a decisive close above $0.061 suggests a 36% upswing to $0.083. However, a breakdown of the symmetrical triangle’s lower trend line at $0.051 shows a downward trajectory for the Dogecoin price toward $0.033.

On April 1, Elon Musk tweeted that SpaceX was “going to put a literal Dogecoin on the literal moon.” As a result, DOGE surged 31% in a single 4-hour candle as it shattered overhead barriers at $0.059 and 0.066.

Soon after, the Dogecoin price undid most of its gains as investors booked profits. This move pushed DOGE back into the consolidation phase. If this trend continues, the meme coin could retest the setup’s lower boundary at $0.051 and perhaps even slice through it, establishing a downtrend.

In that case, DOGE could drop 7.5% toward the Momentum Reversal Indicator’s (MRI) breakout line at $0.047.

If the selling pressure persists, the bears could drag the Dogecoin price by an additional 12% to $0.041.

DOGE/USDT 12-hour chart

DOGE/USDT 12-hour chart

Adding credence to the bearish outlook is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows a massive supply barrier at $0.061. Here roughly 52,200 addresses that purchased nearly 15 billion DOGE are “Out of the Money.” 

Therefore, this barrier will be a tough nut to crack. More so, the demand barriers below DOGE’s current price level are small but stacked together. Hence, a sudden spike in selling pressure could create a domino effect that topples all the support levels.

Dogecoin IOMAP chart

Dogecoin IOMAP chart

However, an unexpected surge in bullish momentum due to Musk’s tweet or a celebrity could send the Dogecoin price lying. In such a scenario, DOGE might quickly slice through the overhead barriers mentioned above.

A decisive close above the MRI’s breakout line at $0.071 could help the Dogecoin price surge 16% to achieve its intended target at $0.083.

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.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Cardano Price Forecast: ADA's recent breakout could trigger 15% rally

Cardano Price Forecast: ADA's recent breakout could trigger 15% rally

Cardano price rally on Monday suggests that a larger bullish move might be in the works. On-chain data shows a comeback in investor interest and entry of institutional investors.

More Cardano News

Ondo price poised to break ATH of $1.04

Ondo price poised to break ATH of $1.04

Ondo price is slowly testing its major support level at $0.63-$0.61. Aggressive buyers can consider accumulating around the immediate support zone, which extends from $0.83 to $0.80.

More Ondo News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

More Shiba Inu News

New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud

New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud

New York Attorney General Letitia James says her office has secured a $2 billion settlement from Genesis. AG Letitia James sued the crypto company in October on account of lying and defrauding investors of over $1 billion.

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis