- Dogecoin has formed a classic cup-and-handle bullish pattern, ready for another upswing.
- Support at the 50 SMA on the 4-hour chart must be guarded to secure the uptrend.
- The IOMAP shines a light on the challenging resistance ahead of DOGE, which may delay the uptrend.
Dogecoin is holding above key support following correction from the all-time high at $0.088. The ‘Meme Coin’ is trading at $0.058, as bulls fight to resume control. Peter Brandt, a renowned trader, has suggested in his latest analysis that the DOGE is primed for a massive 70% upswing to $0.143.
Classic Cup & Handle pattern. $DOGE pic.twitter.com/vnE317M2E0
— Peter Brandt (@PeterLBrandt) February 15, 2021
Dogecoin technical levels flipping bullish
DOGE has formed a classic cup-and-handle pattern on the 4-hour chart. The technical pattern is regarded as a bullish signal whereby the right-hand side goes through a period of low trading volume. The cup-and-handle pattern can form both in short and long timeframes.
When properly timed, this pattern offers excellent entry positions. It is confirmed as the handle reaches maturity, which is marked by low trading volume. A breakout comes into the picture when the volume starts to increase, leading to a retest of the previous high.
DOGE/USD 4-hour chart
The same 4-hour chart shows Dogecoin trading above the 100 Simple Moving Average (SMA). If this support remains intact, bulls will have the opportunity to focus on breaking the near-term 50 SMA resistance. Trading above this critical level could jumpstart the rally to highs above $0.1 and set Dogecoin on the path towards $0.143.
Looking at the other side of the fence
The IOMAP model developed by IntoTheBlock, a leading on-chain analysis platform, highlights rising selling pressure, especially in the region between $0.058 and $0.06. Here, nearly 36,000 addresses had bought roughly 5.6 billion DOGE. Slicing through this level might be an uphill task.
-637490665818965535.png)
Dogecoin IOMAP chart
On the downside, robust support exists to ensure that losses are stopped. For instance, the most significant buyer congestion zone lies between $0.053 and $0.055. Here, nearly 1,700 addresses had previously bought 3.4 billion DOGE. The model generally shows that consolidation will take precedence before the breakout mentioned above comes into the picture.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Pro-crypto French Hill selected as Chairman of the House Financial Services Committee
Republicans selected French Hill as the new Chairman of the House Financial Services Committee. Hill is a crypto supporter and spearheaded the FIT21 bill for crypto regulations. French Hill will be replacing Chair Patrick McHenry, who is retiring from office.
Ethereum could see new all-time high above $5,000, on-chain data signals bullish momentum
Ethereum is up 1% on Thursday as it aims to tackle the selling pressure near the $4,000 psychological level. On-chain data shows that ETH has begun seeing increased bullish momentum, which could push its price to a new all-time high above $5,000.
Crypto Today: Bitcoin price tops $102K as Trump’s firm acquires Ethereum and Chainlink
Cryptocurrency market valuation broke $3.5 trillion Thursday, up 9.4% since Tuesday's market crash halt. In the last 24 hours, 104,700 traders liquidated $172.7 million in long contracts, accounting for 58% of the $298.5 million total liquidations.
Shiba Inu Price Prediction: SHIB set for $0.00004000 breakout as ETH leads market recovery
Shiba Inu price has rebounded 22% from its 14-day low of $0.00002400 recorded during the crypto market dip on Tuesday. With the Ethereum ecosystem attracting rapid capital inflows, is SHIB on the verge of a major breakout?
Bitcoin: BTC reclaims $100K mark
Bitcoin (BTC) reclaimed the $100K level, trading near $100,100 on Friday after a recent decline earlier this week. The recent pullback in BTC was mostly due to high-leverage traders and some holders booking profits. Despite Microsoft’s rejection of adding Bitcoin to the company’s balance sheet, institutional demand remained strong, recording a total inflow of $1.72 billion until Thursday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.