Dogecoin price provides perfect buy opportunity for a 50% breakout

Dogecoin price has been stuck under a crucial barrier for roughly five months. Although DOGE rallied on October 28, it failed to push through this hurdle, leading to consolidation. However, the increased coiling up suggests that the dog-themed cryptocurrency is due for a breakout.

Dogecoin price to trigger a massive bull rally

Dogecoin price set up three swing lows since August 16, resulting in the formation of an inverse head-and-shoulders pattern. This technical formation contains two swing lows of comparable depth forming the shoulders with the central one slightly deeper than the others known as head.

Connecting the peaks of these swing lows results in a neckline that serves as a resistance barrier and helps confirm a breakout.

The setup forecasts a 53% breakout to $0.45, determined by adding the distance between the right shoulder’s peak and the head’s lowest point. 

Although the Dogecoin price came close to breaching the neckline on November 8, it failed. A daily close above $0.28, however, would theoretically confirm a break and the start of a 53% upswing. Investors should wait for a higher high above $0.30 for the opening up of a resistance-free path for DOGE to the liquidity pool ranging from $0.34 to $0.37. Clearing this pitstop will allow Dogecoin price to head higher and produce a swing high of around $0.45.

In total, this ascent from the current position would constitute a 70% climb.

DOGE/USDT 1-day chart

While things are looking up for Dogecoin price, a daily close below the $0.21 to $0.26 demand zone would invalidate the bullish thesis. This move could potentially trigger a further descent for DOGE to $0.19.