Sarah Tran
Independent Analyst
- Dogecoin price could be aiming to reverse the period of underperformance if it holds above the 200 three-day SMA.
- The bulls may aim to target the upper boundary of the governing technical pattern next.
- However, DOGE may face multiple resistances ahead before the optimistic target can be reached.
Dogecoin price is counting on a critical line of defense to hold before a relief rally could be in the offing. If the DOGE bulls manage to reverse the period of underperformance, the canine-themed token could possibly tag the upper boundary of the governing technical pattern at $0.24.
Dogecoin price attempts to escape downtrend
Dogecoin price fate has been sealed within a descending parallel channel as the token has failed to galvanize investors’ enthusiasm. However, the Arms Index (TRIN), which gauges overall market sentiment suggests that there are more buyers than sellers in the market.
Dogecoin price could enter into a relief rally toward the upper boundary of the governing technical pattern at $0.24, resulting in a 71% climb if it manages to sustain above the 200 three-day Simple Moving Average (SMA) at $0.13.
The first obstacle for Dogecoin price may emerge at the 21 three-day SMA at $0.15, then at the middle boundary of the prevailing chart pattern at $0.16, coinciding with the 23.6% Fibonacci retracement level.
Additional hurdles may appear at the 50 three-day SMA at $0.19 next, coinciding with the 38.2% Fibonacci retracement level, then at the 50% retracement level at $0.22.
DOGE/USDT 3-day chart
An increase in buying pressure may see Dogecoin price tag the bullish target at $0.24, where the upper boundary of the parallel channel is located.
However, if a spike in sell order occurs, Dogecoin price may test the 200 three-day SMA at $0.13 as immediate support. If this level fails to hold, DOGE may fall toward the January 22 low at $0.12 next.
If selling pressure continues to increase, Dogecoin price may slide toward the lower boundary of the governing technical pattern at $0.11 next.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.