Traders book profits from Shiba Inu to push Dogecoin to $0.34

Dogecoin price could soon be the beneficiary of an anticipated short-term drop in Shiba Inu. Dogecoin recently completed a daily close that is necessary to confirm any further upside momentum.

Dogecoin price closes above the weekly Tenkan-Sen and daily Cloud, awaits bulls to confirm a new uptrend

Dogecoin price recently completed the ‘final’ technical condition within the Ichimoku Kinko Hyo system to confirm an Ideal Bullish Ichimoku Breakout entry. This occurred on Sunday with a close above the Cloud. Since the Sunday close, Dogecoin has faced intense selling pressure to return inside the Cloud, but has found support against the weekly Tenkan-Sen (thick, blue horizontal ray), 61.8% Fibonacci expansion and 61.8% Fibonacci retracement at $0.26.

It is now incumbent on bulls to support Dogecoin price to confirm that the bullish breakout was an honest move. The 161.8% Fibonacci expansion at $0.34 is the projected target price level if the bulls come in to support Dogecoin. If bulls can rally Dogecoin back above the Cloud, that will likely position the Relative Strength Index above the final overbought level in a bear market (65). If that occurs, then the Relative Strength Index will shift over to bull market conditions, creating massive space for Dogecoin to rally higher before encountering any overbought conditions.

DOGE/USDT Daily Ichimoku Chart

However, bulls should be aware that the current price action could be a colossal fakeout. While Dogecoin can close inside the Cloud and remain in a technical bullish breakout setup, a close below Sunday’s open at $0.25 would likely trigger some intense selling pressure towards $0.21 - $0.22. If that were to occur, the present long bias would be invalidated.