• Dogecoin price burst has now evolved into a minor symmetrical triangle pattern, suggesting a continuation of the advance.
  • DOGE struggles to overcome the extreme barrier defined by May’s declining trend line.
  • 50-day simple moving average (SMA) is the next resistance level if the triangle resolves the upside.

Dogecoin price rally from the 200-day SMA is a bullish start to a sustainable advance moving forward. In the short term, DOGE needs to resolve the symmetrical triangle embracing price for the last five trading days. A resolution to the upside would yield a 25% gain and a test of the 50-day SMA. A moving average that the meme token has not tested since June 5.

Dogecoin price brings the heat, despite the volatility 

At the time of writing, Dogecoin price is on pace to close the quarter up over 370%, placing it at the top of the internal watchlist, while Bitcoin price is down -40%. A remarkable feat considering the size of the May-June DOGE correction. The rally from June 22 has been instrumental in achieving the gain.

Dogecoin price mounted a serious rally off the 200-day SMA at $0.150 on June 22 with above-average volume followed by the best day since the 25% gain on May 13. The spike in DOGE volume and the buying conviction at the strategically important moving average points to interest from prominent investors as big money bids tend to gravitate towards actionable support levels that offer generous value. 

The impact of the noteworthy bid lifted Dogecoin price to the merger of May’s declining trend line at $0.288 with the 23.60% Fibonacci extension of the May-June correction at $0.296. Since the June 25 high DOGE has transitted sideways, releasing any price compression and forming a symmetrical triangle pattern. A pattern that is generally classified as a continuation pattern.

The measured move is 25%, and it equates to a target of $0.345, just slightly above the 50-day SMA at $0.338. If the cryptocurrency market also captures a more substantial bid, Dogecoin price may extend the breakout from the triangle to the 38.2% retracement at $0.384, offering a 40% gain to DOGE investors.

A rally beyond the 38.2% retracement will be a challenge due to the cluster of price congestion around the price level going back to late May and early June. Nevertheless, it will put Dogecoin price on the right side of the instrumental moving averages and, as a result, providing a basis of support when weakness does hit DOGE.

DOGE/USD daily chart

DOGE/USD daily chart

If Dogecoin price resolves the symmetrical triangle to the downside, it will also be a measured move of 25%, but the eventual target is approximately $0.178. The drop would bust the support offered by the May 19 low of $0.195 and leave DOGE close to the 200-day SMA once again. A failure to capture support at the widely followed average will guarantee a sweep of the June 22 low of $0.152. 

Dogecoin price has a headstart on most cryptocurrencies. The dominant response to the 200-day SMA suggests that more prominent investors were trafficking at those levels, providing some shade if selling hits DOGE in the short term. Overall, the outlook is tilted bullish, but there remains potential for interference from the sometimes wicked gyrations of the cryptocurrency market.

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

Largest DeFi exploit of 2022 wipes out $80 million from Qubit's Ethereum-BSC bridge

Ethereum-BSC bridge of Qubit Finance suffered a hack to the tune of $80 million in the largest DeFi exploit of 2022. Hackers exploited the "deposit" function to steal cryptocurrencies from Qubit Finance. 

More Ethereum News

Decentraland bulls go against the bearish trend, targeting $2.60

Decentraland (MANA) price has been on the front foot in a challenging market environment. MANA bulls look ready to eke out  28% of gains for this week after the price lifted from the 200-day Simple Moving Average (SMA) and is now set to pop and stay above the monthly S1 support level.

More Decentraland News

Charles Hoskinson awaits launch of Vaccuumlabs DEX on the Cardano network

Cardano network activity hit a peak with a spike in transactions on the network. Charles Hoskinson, the CEO of IOHK, is awaiting the launch of Vaccuumlab's DEX on the Cardano network. 

More Cardano News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

More Bitcoin News

Bitcoin: Federal Reserve cannot tame BTC’s uptrend

Bitcoin experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed’s decision was announced. As losses have extended and Bitcoin has entered into the $30,000 zone, concerns regarding BTC being in a bear market have increased.

Read full analysis

BTC

ETH

XRP