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

fxsoriginal

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

fxsoriginal

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

fxsoriginal

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.


 

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin continues to range higher, but altcoins suffer

Bitcoin price has been on a tear lately, but Ethereum and Ripple have failed to perform as fear plagues the cryptocurrency markets. As a result, altcoins are down in the dumps with their dull rallies.

More Bitcoin News

MATIC price eyes 22% advance after dYdX lists Polygon

MATIC price has seen a massive bull rally over the past week. The recent listing of MATIC-USD perpetual on the dYdX platform and other developments might push Polygon on another leg-up.

More Polygon News

SafeMoon price awaits 20% bounce after SAFEMOON surges on Dogecoin SpaceX involvement

SafeMoon price has broken out of a parallel channel that has sealed the asset in consolidation since May 25. The rise in SAFEMOON has been propelled by CEO John Karony after he revealed a significant involvement in the cryptocurrency space.

More SafeMoon News

Dogecoin positions itself for rally that may never come

Dogecoin price appears to be bullish and shows signs of a potential new uptrend. However, this upswing needs confirmation, which will arrive after DOGE produces a decisive close at a critical resistance level.

More Dogecoin News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP