- Dogecoin price action positioned perfectly for a sustained rally to $0.25.
- Underperformance trend likely to end soon.
- Short sellers are likely to get squeezed and fuel the upcoming rally.
Dogecoin price action has been a significant source of frustration for DOGE fans and investors. However, given the recent underperformance against its peers like Shiba Inu, bulls look for some reprieve from the current stagnation and downtrend - which has lasted for 281 days.
Dogecoin price is inside a key Gann time cycle, warning of probable upswing very soon
Dogecoin price was able to stave off another capitulation move on February 4. The February 4 swing low preceded the 27% rally DOGE experienced until February 7. The whipsaws and wild swings are par for the course for DOGE, which has seen four other whipsaws resulting in 25% to greater than 50% swings up and down since January 2022.
DOGE/USDT Daily Ichimoku Kinko Hyo Chart
The result of these various whipsaws is a bullish reversal pattern currently in development: an inverse head-and-shoulders pattern. This pattern, if triggered, would likely generate the momentum necessary to put Dogecoin price into an Ideal Bullish Ichimoku Breakout on its daily chart while also returning it to the critical $0.25 price level.
Dogecoin’s $0.005/3-box reversal Point and Figure chart compliments the reversal patterns developing on the candlestick chart. A hypothetical long opportunity now exists for Dogecoin price. The hypothetical setup is a buy-stop order at the three-box reversal of the current O-column ($0.165 at the time of publishing). The stop loss is a four-box stop and the profit target, based on the Vertical Profit Target method in Point and Figure analysis, is at $0.26.
DOGE/USDT $0.005/3-box Reversal Point and Figure Chart
If Dogecoin price moves lower and prints one or more Os in the current O column, the buy stop entry and four-box stop move in tandem with price. The profit target, however, remains the same. The hypothetical long entry is invalidated if the current O-column prints an O at $0.11. In that scenario, Dogecoin would likely enter a capitulation zone to test the $0.08 or $0.09 value areas.
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
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.