Dogecoin Price Prediction: DOGE gains in jeopardy as multiple sell signals arrive
- Dogecoin price witnessed another huge bull run which pushed it by nearly 560%.
- The MRI flashed warning signs on the 4-hour and 1-day chart, suggesting that a retracement is likely.
- A continuation of the bullish scenario will occur if DOGE shatters its recent top at $0.459.
Dogecoin price saw a parabolic run toward a new all-time high. Multiple time frames have flashed warning signs of an incoming retracement.
Dogecoin price consolidates
Dogecoin price rose by 560% since April 12, which propelled it from $0.07 to $0.45 within four days. Such a massive rise in DOGE isn’t surprising, considering a similar spike seen in January.
On the 4-hour chart, Dogecoin price appears to be consolidating, creating a base that could either catapult the meme coin higher or kickstart a correction to crucial demand barriers.
The Momentum Reversal Indicator (MRI) helps provide clarity on this ambiguous situation. The red ‘one’ candlestick on the 4-hour chart suggests that the bull run has reached its peak. Since this setup forecasts a one-to-four candlestick correction, it is most likely that this consolidation will result in a downtrend.
Providing headwinds to this rally is the MRI’s preemptive top on the daily chart. This technical formation hints that the bull rally will shortly reach its top on the larger time frame, which paints a bearish picture.
Hence, a breach of the supply zone’s lower boundary at $0.302 should serve as the first sign of a corrective phase. In such a case, the DOGE price will retrace 21% toward the $0.240.
If the sellers overwhelm this level, a 28% pullback to the MRI’s breakout line at $0.173 should be the likely course of action.
DOGE/USDT 4-hour, 1-day chart
On the flip side, if the buyers restart the rally, Dogecoin price will slice through the upper boundary of its consolidation phase at $0.370, which will hint at rising bullish momentum.
If the all-time highs at $0.459 are toppled, it would seal the bullish fate and ignite a 35% upswing to $0.628, coinciding with the MRI’s breakout line.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
