How Dogecoin price will double despite recent fakeout

Dogecoin price is on its way to relaunch after the initial breakout failed to maintain its momentum.
Investors can expect a 40% ascent to $0.216 in the coming week.
A weekly candlestick close below $0.11 will invalidate the bullish thesis for DOGE.

Dogecoin price has undone its gains from the last week but has not turned bearish yet. Market participants can still expect DOGE to start another rally to retest the target it failed to reach before.

Dogecoin price to relaunch its uptrend

Dogecoin price action since May 3, 2021, has set up four lower highs and five lower lows, which when connected using trend lines results in a falling wedge formation. This technical formation forecasts a 75% ascent to $0.216, determined by adding the distance between the first swing high and low to the breakout point at $0.123.

On March 21, the Dogecoin price breached the falling wedge’s upper trend line at $0.123 and rallied 21%, but in the second week of April, it seems to be facing difficulties. Despite rallying 28%, intense profit-taking combined with a BTC flash crash has caused the gains to come undone.

As a result, DOGE is currently hovering around $0.151, which suggests that another 42% ascent is likely. Assuming DOGE manages to hit its targets, a local top is likely to form around the swing high.

If buying pressure continues to build up, however, Dogecoin's price could extend to the $0.322 resistance barrier, bringing the total gain to 113%.

DOGE/USDT 1-day chart

While the general outlook for DOGE is massively bullish from a swing trader’s perspective, a sudden crash for the big crypto could ruin the setup.

In such a case, a weekly candlestick close below $0.11 will invalidate the bullish thesis for the Dogecoin price. This development would open the path for DOGE to explore lower levels such as $0.087, where sidelined buyers or long-term investors might step in.

Share: Cryptos feed

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.

Join Telegram