Dogecoin Price Forecast: DOGE must break through this crucial resistance barrier to resume uptrend

  • Dogecoin must flip the position above the SuperTrend indicator and the Parabolic SAR points to restart the uptrend.
  • Dogecoin is holding above robust support between $0.036 and $0.037, as shown by the IOMAP model.

Dogecoin went ballistic last week following the pump on Reddit and Twitter. As covered, the token soared by more than 600% to exchange hands at $0.088. Dogecoin briefly stepped into the top ten bracket, but a correction started soon after. Meanwhile, a technical indicator implies that the critical hurdle at $0.60 must come down for Dogecoin to resume the uptrend.

Dogecoin still has the potential to jumpstart the rally

Dogecoin is trading at $0.038 at the time of writing. Despite the breakdown, the 14th largest token could settle above all the applied moving averages, including the 50 Simple Moving Average, the 100 SMA, and 200 SMA. This shows that bulls have not been overpowered yet and could resume the uptrend.

The 4-hour chart shows DOGE’s potential based on the SuperTrend indicator in collaboration with the Parabolic SARpoints. To jumpstart the uptrend, Dogecoin must overcome the hurdle at $0.060. To play the bullish card properly, a 4-hour candlestick above this seller congestion needs to come into the picture.

The significant move is likely to turn the indicators bullish and perhaps end up in a new uptrend. Notably, there is a likelihood of the bullish outlook being validated by the Moving Average Convergence Divergence whereby the MACD line (blue) will cross above the signal line. This indicator tracks the momentum of an asset’s trend and signals buy and sell signals when properly applied.

DOGE/USD 4-hour chart

DOGE/USD 4-hour chart

Dogecoin must hold firmly onto this support

The IOMAP model by IntoTheBlock reveals that Dogecoin is sitting on a stable support area. The buyer congestion zone runs from $0.036 and $0.037. Here, roughly 41,000 addresses are profiting from the approximately 4.6 billion DOGE previously bought. It is improbable that Dogecoin will slice through this zone in the near term to continue with the correction.



Looking at the other side of the picture

Note that Dogecoin’s uptrend might come to a halt due to the IOMAP resistance at $0.043 to $0.044. Here, 524 addresses had bought about 7.2 billion DOGE. Failure to break above this area will sabotage the bullish outlook described above.

On the other hand, the support between $0.036 and $0.037 must hold to avoid the potential steep breakdown. The likely support levels include the 50 SMA, 100 SMA, and 200 SMA.

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 Weekly Forecast: BTC price surges despite threat of crash to $36k

Bitcoin price shows lackluster performance after the recent crash, giving rise to the credibility of the run-up to $50,000. As the September 24 daily candlestick bathes in red, the chances of an uptrend continue to diminish.

More Bitcoin news

XLM Price Prediction: Stellar traps bulls as it targets $0.195

Since Wednesday, the Stellar (XLM) price has been paring back losses, but price action has already started to fade on XLM. Bulls cannot push the price above $0.30, and XLM price has startedto form a bull trap.

More Stellar Lumens News

Polkadot Price Prediction: DOT will hit $40 by October

Polkadot (DOT) bears are scrambling to cash in on their profits as price action for DOT reverses quite rapidly, with bulls overtaking control and pushing price action back toward levels achieved before the correction began. 

More Polkadot News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

China’s central bank cracks down on illegal financial activities from overseas cryptocurrency exchanges. The recent announcement marks the People’s Bank of China's (PBoC) strongest move against cryptocurrency mining and trading to date. 

More Cryptocurrencies News


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