- Dogecoin price is set to recover from the slippage the week before.
- DOGE price action undergoes consolidation with higher lows and lower highs.
- As both buyers and sellers get pushed towards each other, DOGE looks set to pop higher.
Dogecoin (DOGE) price is set to execute a bullish breakout as this week, both buyers and sellers got squeezed toward each other. Going into next week, more and more tail risks are being defused or are diminishing. This opens a new area that can be filled with tailwinds that will lift sentiment in cryptocurrencies overall and could bring DOGE price towards $0.18, returning 38% of gains.
DOGE price set to pop after consolidation
Dogecoin price dropped to the backfoot last week, but the bounce off the 55-day Simple Moving Average around $0.1323 proved not enough to slingshot bulls up towards $0.16. Instead, this week’s price action consolidated with lower highs and higher lows as buyers and sellers are shoved toward each other. Expect a breakout either way, but seeing the current diminishing tailwinds, expect that breakout to be on the upside with $0.18 on the docket as the target.
DOGE price will thus enjoy some tailwinds that will be added to the current trade equilibrium; with Russia now only focussing on acquiring a partial piece of the east in Ukraine, no fundamental new elements are added that further escalate the situation, and in the polls Macron is gaining further on Le Pen, guiding the E.U. into a week of stability and no significant shift in power. These elements are enough to push DOGE price up to $0.18 against the 200-day SMA. If these tailwinds weigh out enough to break above the 200-day SMA remains to be seen, as the dollar index is trading above 100 and thus is slowing down the rally a bit.
DOGE/USD weekly chart
Although tail risks are diminishing, earning season is still ongoing and has only started this week. Risk to the downside can come from more earnings misses or alerts from CEOs on rising price costs that need to be passed on to customers, adding to more inflation. That could trigger broad risk-off in markets with a nosedive move in Dogecoin towards $0.1255 and possibly even back to $0.1004, printing new lows for the year.
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