Dogecoin price in the initial stages of a new rally to all-time highs

  • Dogecoin price squeeze confirms the end of the downtrend. 
  • Indeed, a larger cup-completion cart pattern is forming.
  • Patience will be rewarded as the pattern’s handle forms.

Dogecoin price finds support at near the 23 twelve-hour simple moving average. Price action is corrective, and volume has significantly declined during the pullback.

Dogecoin price squeeze generates a 28% gain

A squeeze play emerges when the Bollinger Bands (BB) collapse inside the Keltner Bands. It alerts the trader that the price of an asset has compressed about as much as it can and is ready for an explosive move in either direction. Traders can implement squeeze plays on any chart duration.

On the 12-hour chart below, DOGE price squeeze play was triggered on March 5 when the lower Bollinger Band moved inside the Kelter Band. Dogecoin price gained almost 28% before finding resistance just below the .50 retracement level at $.0645

DOGE/USD 12-hour chart

DOGE defining a cup-completion 

A cup-completion cheat pattern develops when the handle of the cup forms in the lower half of a cup base. It is a high probability opportunity for a trader to enter the emerging chart pattern at an earlier price level, rather than waiting for the price to shape an entire cup-with-handle base. 

Following the sharp 28% gain, Dogecoin price action has been corrective, with support being framed above the 23 twelve-hour simple moving average. During the pullback, the volume has progressively declined as it should do during a healthy correction.

The projection now is for Dogecoin price to complete a handle in the coming days and breakout above the $.0636 price level to confirm the pattern.

Post-breakout profit targets for DOGE price are the .618 retracement level at $.070 followed by the .786 retracement level at $.078. The Relative Strength Index (RSI) shows that the overbought condition has been released. 

DOGE/USD 12-hour chart

The explicit support area is framed by the 23 12-hour simple moving average and the February 23 rising trendline at $0.052. A secondary support level is the price congestion going back to the February 15 low at $.0472.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA braces for a test of $2 amid a potential bull pennant

Cardano (ADA/USD) is extending its recovery this Sunday after a sharp sell-off witnessed a day before. ADA/USD charts a bull pennant on the 12H chart.  A test of the $2 mark appears inevitable if the bullish pattern is confirmed. RSI has regained upside momentum, well above 50.00.

More Cardano News

XLM Price risks further falls towards $0.53 amid double top reversal

XLM/USD is falling for the third straight day on Sunday. $0.53 support appears at risk after the double top reversal on the 1D chart. RSI points south towards the midline as the XLM price eases from record highs.

More Stellar News

Dogecoin: Defending 21-DMA is critical after Musk calls it a ‘hustle’

Elon Musk's appearance on 'SNL' throws DOGE under the bus. DOGE/USD extends sell-off into Sunday, hitting five-day lows. DOGE bulls remain hopeful as 21-DMA support holds, with RSI still bullish.

More Dogecoin News

Ethereum bulls gather strength for a sustained break above $4000

Ethereum bulls take a breather after Saturday’s $500 rally to record highs. The No. 2 coin eyes additional upside after rising wedge breakout on the 4H chart. RSI is in the overbought region, dip buying to keep the uptrend intact.

More Ethereum 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