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Dogecoin price needs to overcome the $0.068 resistance for a trip to the moon

  • Dogecoin price pattern has morphed into a larger ascending triangle.
  • The search for yield might push DOGE above critical resistance.
  • IOMAP data shows firm support from $0.0541 to $0.0636.

Dogecoin price pattern has evolved into a larger ascending triangle since March but has failed to overcome $0.0675, the 50% retracement level of the February decline, on a daily closing basis. It could just be a matter of time as support builds just below at $0.0636.

Dogecoin price sending mixed messages to speculators

Since the February low, DOGE has formed an ascending triangle, frustrating bullish speculators with numerous touches of the upper trendline and failed breaches. The lack of a sustainable impulse above resistance, outsized media hype, and tangible fundamental developments leaves the current outlook at neutral. Still, thanks to the current IOMAP data, there is no longer a slight bearish tilt.

DOGE IOMAP Chart

DOGE IOMAP Chart

The IntoTheBlock’s In/Out of the Money Around Price (IOMAP) data vividly shows a range of substantial support that would need to be overcome to fulfill a collapse through the lower trendline of the triangle. In contrast, a relatively small number of speculators with out-of-the-money holdings exist presently to offer resistance.

Unlike the last few days, DOGE needs to close above the 50% retracement on a daily basis before speculators can entertain notably higher prices. The next valid resistance is the 61.8% retracement level at $0.0739, followed by $0.0781, the highest weekly close.

A weekly close above $0.0781 would open the path to the measured move target of $0.0916, a gain of almost 40%, and finally, the all-time high at $0.0943.

DOGE/USD daily chart

DOGE/USD daily chart

The chart clearly shows that the triangle’s lower trendline is the first test for bearish speculators, followed by the March 25 low of $0.0483. Selling pressure could accelerate below the March 25 low and quickly put DOGE at the 61.8% retracement of the January spike at $0.0428 and the February low at $0.0408.

Alternatively, DOGE could just continue to frustrate speculators by waiting until the triangle apex before resolving. Buyers and sellers beware.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

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