- 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
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.
Recommended Content
Editors’ Picks
Ethereum Price Forecast: ETH shows mild signs of recovery
Ethereum price broadly consolidates after breaking above its 50-day EMA at $2,535, suggesting a possible rally ahead. US spot Ethereum ETFs records an inflow of $17 million on Monday. Ethereum’s open interest surged more than 16%, indicating new buying activity.
Fantom price poised for a rally as on-chain data shows bullish bias
Fantom price is nearing its key resistance level at $0.746; a firm close above it could continue the rally. On-chain data paints a bullish picture, as FTM’s Exchange Flow Balance shows a negative spike and fees collected are the highest since November 2023.
Top 3 meme coins: Dogecoin, Shiba Inu and PEPE look set for further declines amid lower investor interest
Dogecoin, Shiba Inu and PEPE decline on Tuesday after gaining on Monday. The number of active addresses in DOGE has dropped sharply from its October 10 peak, while it edges up for SHIB and PEPE. The MVRV ratio shows that the top 3 meme coins are overvalued in the 30-day time frame.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC targets $70,000 as bullish momentum builds
Bitcoin is retesting the $66,000 resistance level; a firm close above it could continue its ongoing rally. Ethereum price broke above its resistance barrier, eyeing for a rally ahead. Ripple price is approaching the 200-day EMA at $0.553; a close above suggests a possible recovery.
Bitcoin Weekly Forecast: Will BTC decline further?
Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.