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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.

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