Jonathan Morgan
Independent Analyst
- Dogecoin price has been in a downtrend for over a year.
- Critical breakout zone ahead could initiate an uptrend.
- Downside risks remain a concern but should be limited in scope.
Dogecoin price remains under significant pressure from sellers. DOGE is down more than 83% from its all-time high, and volume participation is near all-time lows. However, lower highs may be forming and could be a precursor no a new expansion move higher.
Dogecoin price is positioned for a push above $0.20
Dogecoin price action, from an Ichimoku perspective, is clearly bearish. All conditions necessary for an Ideal Bearish Ichimoku Breakout are present. However, bears have been unable or unwilling to capitalize on this bearish setup.
In many ways, Dogecoin price is showing some resilience. Compared to many other altcoins, DOGE is off its 2022 lows and is developing a strong area of support.
If bulls want to begin a new uptrend, several resistance levels must be broken first. There is a massive resistance cluster between $0.134 and $0.157. The technical levels contained in that range are:
- The Tenkan-Sen at $0.134
- The 2022 Volume Point of Control at $0.141
- The Kijun-Sen at $0.147
- The bottom of the Ichimoku Cloud (Senkou Span B) at $0.143
- The top of the Ichimoku Cloud (Senkou Span A) at $0.152
- The 50% Fibonacci expansion level at $0.157
Such a large collection of resistance levels in a tight range is rare, but it provides a clear picture of how big of an expansion move Dogecoin could make if it successfully breaks that cluster.
DOGE/USDT Daily Ichimoku Kinko Hyo Chart
The projected target range for Dogecoin price on a successful breakout would be the 161.8% Fibonacci expansion at $0.273. $0.0273 is just shy of the 38.2% Fibonacci retrace of the February 24, 2022 swing low to the top of the weekly strong bar on May 14, 2021.
Downside risks exist but are probably limited to the lower trendline of a prior descending wedge pattern at the critical and psychological price level of $0.10.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Litecoin price is failing recovery as Whales pull back to December 2020 lows
Litecoin price was showing some signs of recovery about two weeks ago, but it failed to sustain the bullish momentum, resulting in minor corrections. While broader market cues are to be blamed for this, a lot of the credit goes to the whales, too, whose disappointing performance has impacted the altcoin.
Members of US FSC urge SEC Chair Gensler to immediately approve spot Bitcoin ETFs
The discourse surrounding the spot Bitcoin Exchange Traded Funds (ETFs) is reaching its pinnacle as key lawmakers are now stepping in to resolve the matter. The Securities and Exchange Commission’s (SEC) staunch repulsion of the ETFs has been called out by the lawmakers, urging the regulator to approve the applications.
Ripple and Coinbase lead the big fight as US crypto firms advocate for regulatory overhaul
Ripple Labs is standing shoulder-to-shoulder with US-based cryptocurrency exchange Coinbase as crypto firms in the US push for a regulatory overhaul in the country. It comes amid growing concerns that stringent and unclear regulatory structures in the US continue to drive business away from the country.
Ethereum Restaking - The next big thing after liquid staking?
Ethereum introduced unstaking this year, and the crypto market witnessed a stark shift. The Decentralized Finance (DeFi) space, in particular, observed the emergence of liquid staking protocols. With the discourse of “restaking” picking up heat, it seems like the market is getting ready for the next big thing.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.