Dogecoin price provides perfect buy opportunity for a 50% breakout


  • Dogecoin price is forming an inverse head-and-shoulders pattern, suggesting a 53% breakout move.
  • A confirmation of this upswing will arrive after DOGE produces a daily close above $0.30.
  • If the selling pressure pushes the meme coin to produce a lower low below $0.21, it will invalidate the bullish thesis.

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

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.

 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Decentraland price not out of the woods yet, MANA bears prepare for 28% decline

Decentraland price could be headed for a further decline as MANA continues to drop toward the bearish target projected by a pessimistic chart pattern. The token is at risk of a 28% plunge.

More Decentraland news

Ethereum shifts away from ETH 2.0

Ethereum will be moving away from ETH 1.0 and ETH 2.0 as the protocol undergoes significant changes. Core developers on the network are referring to the stages on the blockchain as the “execution layer” and “consensus layer.”

More Ethereum news

Bitcoin finds buyers despite new six-month and 2022 lows, BTC relief rally on deck

Bitcoin price action on Monday was mainly in a full-blown bear attack, with a new 2022 and six-month lows hit. That all changed near the end of the NY equity market session when buyers poured in to rally Bitcoin higher to close in the green for the second day in a row.

More Bitcoin news

Binance Coin bulls may take over as BNB finds support at $350

Binance Coin price has fallen more than 31% since last Monday and over 51% from the all-time high. A deeper push lower is likely if the bulls fail to keep Binance Coin above its final support zone. New 2022 and seven-month lows are coming up.

More Binance Coin news

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP