• Dogecoin price looks for a reversal and massive drive higher.
  • Inverse head-and-shoulders pattern at the bottom of a swing often triggers explosive movement higher.
  • Point and Figure charts clear up a lot of the consolidation and noise associated with candlestick charts, providing more clear price action structure.

Dogecoin price is ready for a strong rebound as pent-up demand and a return of bulls come into the market. However, a powerful reversal pattern is present and could trigger one of the most explosive moves higher that Dogecoin has seen in the past six months.

Dogecoin inverse head-and-shoulder setup could generate a 100% gain

Dogecoin price has one of the most sought-after bullish reversal patterns in technical analysis: the inverse head-and-shoulder pattern. The strength of this pattern is exacerbated by the location of its development: the bottom of swing low. As a result, bulls will need to push Dogecoin to a close above the neckline at $0.27, but from there, sustained price action is likely to continue.

Utilizing the Fibonacci expansion tool projects a target zone of $0.43. The horizontal profit method in Point and Figure analysis points to $0.42 and compliments the Fibonacci expansion zone. Thus, there is little resistance to stop Dogecoin price from gaining nearly 100% on the next breakout. Some profit-taking may occur at the 161.8% Fibonacci expansion at $0.35, but the pent-up demand and momentum accompanying Dogecoin may make $0.35 a moot price level.

DOGE/USDT $0.005/3-box reversal Point and Figure Chart

This bullish outlook can be invalid by breaching below the head of the inverse head-and-shoulder pattern at $0.195. A break below that level will likely generate strong selling that could target a high volume node at the $0.13 value area. Below that, it’s a quick trip to $0.08.

 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP Price Prediction: Ripple can dip to $0.50

A brief technical and on-chain analysis on XRP price. FXStreet's analysts evaluate why Ripple could drop lower. 

More Ripple News

Ethereum price set to break below $3,000 as crypto bloodbath persists

Ethereum price is still under pressure from the red descending trend line. ETH price is set to break $3,018, bringing the price below $3,000. Expect a further continuation to go hand-in-hand with current financial market sentiment.

More Ethereum News

MATIC price to present a buy opportunity before Polygon rallies

Polygon price action is still stuck in an upward trend channel. MATIC’s current level looks a good buy near the lower end of the channel. Expect a return to the middle of the channel or swing to the upper band once global markets turn green again.

More Polygon News

Crypto.com hits two-month lows as selling pressure accelerates

Crypto.com price is within range of its final support zone before it could move into the $0.30 value area. Bears are in control and have been fighting to push CRO lower, but bulls have persisted.

More Crypto.com News

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis

BTC

ETH

XRP