Dogecoin Price Forecast: DOGE goes through a period of price consolidation


  • The Bollinger Band in DOGE’s daily chart has started squeezing, indicating a low price volatility period.
  • Dogecoin currently faces significant resistance at the 50-day SMA ($0.0027)

DOGE reached a high of 0.00478 in July 2020 and has been on a downward trajectory since then. The price has currently reached 0.0026 and is going through a consolidation period. This is indicated by the Bollinger Bands, which have started squeezing.

DOGE/USDT daily chart

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As per the IOMAP, DOGE/USD faces significant resistance at the 50-day SMA ($0.0027). Previously, at this level, 107,500 addresses had purchased 10 billion DOGE tokens. There is a lack of healthy support levels on the downside, so any downward movement could be borderline catastrophic.

DOGE IOMAP

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However, two things show that the eventual market breakout is going to be bullish. Firstly the MACD indicates that the market momentum is buyer-friendly. Secondly, the weekly chart has flashed a buy signal, so upward movement is eventually expected.

DOGE/USDT weekly chart

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As per the chart, one can expect DOGE/SUDT to reach the $0.00275 level. A break above that level can expect the buyers to reach the $0.0032 resistance level. On the downside, the price has strong support at the 50-bar SMA.

The Flipside: Can the bears take control

If the price experiences a bearish breakout, it will probably drop till the $0.0025 support line. As per the IOMAP, any break below this level will probably take the price below $0.0022. This is further corroborated by the weekly chart, which shows strong support at the 50-bar SMA ($0.0025) and $0.0022.

Key price levels to watch

For the DOGE buyers, the key resistance barrier lies at the 50-day SMA ($0.0027). A break above this level will take the price to the 200-day SMA ($0.275).

The main price level for the bears is at the $0.0025 support and $0.0022 support walls.


 

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