• Dogecoin price has finalized a head-and-shoulders pattern with a measured move of over 80%.
  • DOGE investors are unable to unlock the unrelenting resistance defined by May’s descending trend line.
  • Anchored VWAP from January 28 aligns with the neckline at $0.155, creating a barrier against bearish aspirations.

Dogecoin price has featured an uneventful investment environment since the June 25 rebound high as May’s descending trend line has successfully halted each daily rally attempt. As long as the trend line maintains its technical presence, DOGE is projected to continue erasing the 95% rebound off the 200-day simple moving average (SMA) on June 22 and trigger the head-and-shoulders pattern.

Dogecoin price has to make a choice soon

The emerging head-and-shoulders pattern offers an alternative bearish twist to the price structure that has evolved since April and establishes a firm entry price should Dogecoin price pursue lower levels moving forward. Enforcing the right shoulder’s resistance is May’s descending trend line, currently at $0.209, formalizing an unprecedented technical obstacle for DOGE over the last two weeks.

The measured move of the head-and-shoulders pattern is 82%, fixing the DOGE price target at $0.028 and leaving Dogecoin price back at levels last seen in early February. It would be a remarkable conclusion to one of the most interesting and polarizing stories in the cryptocurrency complex during 2021.

A DOGE decline to the target price is not a slamdunk. Dogecoin price will need to overcome the layered support specified by the May 19 low of $0.195, the 200-day SMA at $0.175, the Anchored VWAP and neckline at $0.155, and the April 23 low of $0.135. A drop to the April 23 low would equal a 30% loss from the current price and represent a more realistic target if the meme token finally chooses a bearish resolution to the stagnating price action.

Should the cryptocurrency market suffer a widespread sell-off, Dogecoin price will be attracted to the support produced by the January 29 high of $0.029.

DOGE/USD daily chart

DOGE/USD daily chart

DOGE investors can entertain a better outcome for Dogecoin price if they log a daily close above $0.229. It may release the digital asset to test the declining 50-day SMA at $0.286, offering a 20% gain from $0.229.

Dogecoin price has fallen in line with the realities of the charts, leaving behind the period of unstoppable gains fueled by FOMO. As a result, DOGE is slowly being cornered into another collapse that would erase a large percentage of the 2021 gains.

With DOGE’s back against the wall, it is essential to reiterate that past performance is no guarantee of future results.

Here, FXStreet's analysts evaluate where DOGE could be heading 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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Dogecoin Price Prediction: How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin Price Prediction: How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin price shows signs of consolidation as it produces a potential top formation. While the direction of DOGE is decided, there might be a minor detour before reaching its target.

More Dogecoin News

Solana price action will get boring unless one of these levels is broken

Solana price action will get boring unless one of these levels is broken

Solana price shows a slow takeover of the bears after bulls managed to move the asset higher. Due to Bitcoin’s sudden sell-off, altcoins, including SOL, have taken a major hit.

More Solana News

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing.

More Cryptocurrencies News

Is a 75% decline still possible for the Ethereum Classic price?

Is a 75% decline still possible for the Ethereum Classic price?

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally.

More Ethereum Classic News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP