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Dogecoin underperforms against Shiba Inu, DOGE struggles against $0.14 resistance

  • Dogecoin price continues to face strong rejection against a near-term resistance cluster.
  • A series of Fibonacci, Ichimoku, and volume levels may prolong DOGE’s trading range.
  • The conviction of sellers is being tested.

Dogecoin price has moved over 13% higher from Monday’s open but was halted against a strong Ichimoku resistance level. Despite the rejection, DOGE is still up nearly 10% from the Monday open. But that gain may be at risk of being lost.

Dogecoin price struggles to crack $0.14 resistance; failure to do so soon could trigger another wave of selling

Dogecoin price is at an inflection point for bulls. The $0.14 price contains the 23.6% Fibonacci retracement, the 2022 Volume Point Of Control, and the daily Kijun-Sen. In addition, $0.14 represents the closest and strongest resistance level on the daily chart for DOGE.

Adding insult to injury is a series of primary resistance levels above $0.14:

  1. 38.2% Fibonacci retracement and bottom of the Ichimoku Cloud (Senkou Span A) at $0.15.
  2. 50% Fibonacci retracement at $0.16.
  3. Top of the Ichimoku Cloud (Senkou Span B) and 61.8% Fibonacci retracement at $0.17.

On a positive note, if Dogecoin price does push through these resistance zones and close at or above $0.18, it will enter into an Ideal Bullish Ichimoku breakout. From there, DOGE enters a price range where it is easier to move higher, than lower. Additionally, the ascent is likely to be faster the higher DOGE moves. A move to the $0.25 level as the next primary resistance zone should be void of any major resistance levels. 

DOGE/USDT Daily Ichimoku Kinko Hyo Chart

Downside risks do remain, and they are significant. Any daily close below $0.12 could trigger a flash-crash into the $0.08 to $0.09 price levels. The extended 2021 Volume Profile is extremely thing between $0.12 and $0.08. In that scenario, any near-term bullish outlook would be invalidated.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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