|

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.

More from Sheldon McIntyre, CMT
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Michael Selig assumes role as new CFTC Chair, what does this mean for crypto?

Michael Selig has been sworn in to serve as the 16th Chairman of the Commodity Futures Trading Commission. Selig was confirmed by the US Senate to head the commission last week, following his October nomination by the US President Donald Trump.

Crypto.com hires sports trader for event prediction market-making

Crypto.com plans to recruit a quant trader for the sports market-making team to buy and sell financial contracts related to these events. Opponents argue that internal trading desks put operators or their affiliates on the opposite side of customer trades. 

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.