• Dogecoin price quickly retakes critical April high at $0.453.
  • Accumulation/distribution profile for daily volume is supportive of a firm low.
  • An emerging double bottom on the intra-day charts to confirm DOGE trend renewal.

Dogecoin price closed below the critical April high yesterday, putting the pursuit of $1.00 in doubt. The new Elon Musk tweet has reversed the descent and raises the potential of DOGE closing today with a bullish engulfing day.

Dogecoin price needs liquidity and FOMO

On May 11, Dogecoin price closed with two consecutive inside days, suggesting the decline from the May 7 high had been exhausted, and a renewal of the steep advance was around the corner. However, yesterday’s decline and close below the April high of $0.453 lowered the bullish outlook to neutral. 

The DOGE outlook brightened just a few minutes ago with a tweet from Elon Musk saying, “working with Doge devs to improve system transaction efficiency. Potentially promising.”

Suppose Dogecoin price closes today above the 50% retracement level of the rally from the April low at $0.443 and the April high of $0.453. In that case, the DOGE outlook will turn bullish and create the foundation for a new assault on the psychologically important $1.00. A bullish engulfing day, requiring a close above $0.530, would add to the strength of the bullish outlook.

To confirm a low, Dogecoin price needs to trade above the double-bottom trigger price at $0.597. A successful DOGE breakout from the bottoming pattern would target the 138.2% Fibonacci extension of the April decline at $0.756 and then the topside trend line from the January high through the April high currently at $0.798. Once the temporary resistance levels are liquidated, DOGE will be set to test $1.00 and the 161.8% extension of the April decline at $1.01.

DOGE/USD 12-hour chart

To be sure, Dogecoin price does experience wild swings thanks to social media headlines and overall FOMO. The news tonight is just another case, but if investors embrace the personality of DOGE and couple it with objective technical levels, they can successfully capitalize on one of the most important financial stories of 2021.


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

Bitcoin continues to range higher, but altcoins suffer

Bitcoin price has been on a tear lately, but Ethereum and Ripple have failed to perform as fear plagues the cryptocurrency markets. As a result, altcoins are down in the dumps with their dull rallies.

More Bitcoin News

MATIC price eyes 22% advance after dYdX lists Polygon

MATIC price has seen a massive bull rally over the past week. The recent listing of MATIC-USD perpetual on the dYdX platform and other developments might push Polygon on another leg-up.

More Polygon News

SafeMoon price awaits 20% bounce after SAFEMOON surges on Dogecoin SpaceX involvement

SafeMoon price has broken out of a parallel channel that has sealed the asset in consolidation since May 25. The rise in SAFEMOON has been propelled by CEO John Karony after he revealed a significant involvement in the cryptocurrency space.

More SafeMoon News

Dogecoin positions itself for rally that may never come

Dogecoin price appears to be bullish and shows signs of a potential new uptrend. However, this upswing needs confirmation, which will arrive after DOGE produces a decisive close at a critical resistance level.

More Dogecoin News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast