• Dogecoin price staring at consecutive closes below the 50-day simple moving average (SMA) since November 2020.
  • Daily volume has not closed above average since February 10.
  • Squeeze formation puts DOGE traders on alert.

Dogecoin price is at an inflection point as two technical developments may ignite volatility and bring an end to the long drift sideways of the last month.

Dogecoin price holds a neutral bias for traders

DOGE is set to close today with a squeeze formation confirmation, and it may be the catalyst that shakes the bulls or bears from hibernation. The formation comes at a time when the altcoin will close below the 50-day SMA for the second day in a row, something that has not occurred since November 1-2, 2020.

In early March, the last squeeze formation generated a 30% spike over four days, including a one-day gain of 22% on March 8.   

If the squeeze formation resolves to the upside, the first important resistance is the upper Bollinger and Keltner bands at $0.640. A daily close above the resistance will raise the odds that the rally will reach the 0.618 Fibonacci retracement level of the February crash at $0.074. 

The clustering of long wicks above $0.080 in early February warns traders not to get too greedy and lock in profits. New all-time highs will have to wait for some months.

DOGE/USD daily chart

DOGE/USD daily chart

With Dogecoin price set to close below the 50-day SMA  around  $0.056 at the time of writing, SMA traders should be ready for a potential decline to the lower Bollinger and Keltner bands at $0.048. The next credible support is at the 0.618 retracement level of the bull market beginning November 2020 at $0.039. Further weakness will lead to panic and will likely erase a significant portion of the social media-driven gains.

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

Cryptos enter buy zone

Bitcoin price has made a significant dip this week, dropping more than 11% and returning levels not trades since August 2021. Etheruem price hits new three-month lows, threatens a return to the $2,300 value area. XRP price looks determined to push lower to the $0.65 support zone before generating another bull run.

More Cryptocurrencies News

Loopring, NEAR and Harmony among the biggest losers as crypto bloodbath intensifies

Altcoins suffered double-digit losses in the recent crypto bloodbath. The recent spike in altcoin prices was followed by a correction for Loopring, Harmony and NEAR. The losses nursed by altcoins were accompanied by a wave of selling pressure across exchanges. 

More Cryptocurrencies News

Shiba Inu price set to crash by 70% as critical support weakens

Shiba Inu (SHIB) price continues to be controlled by bears after the dead-cat bounce in stock markets yesterday evening. With the Nasdaq closing sharply lower, giving up earlier gains, cryptocurrencies are being dragged into a selloff on its coattails, and bearish headwinds  persist. 

More Shiba Inu News

Crypto.com Price Prediction: CRO ready to return to $0.25

Crypto.com Coin (CRO) is withstanding the current market headwind not that great. It has already lost over 50% of its value from the highs, and CRO could be set to lose another 30% as essential support is being breached.

More Crypto.com 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