• Dogecoin price could see some incoming speculative money from profit-taking in Shiba Inu
  • A bullish close above the Cloud on the daily chart indicates future upswing likely.
  • The outperformance of Shiba Inu is likely as Dogecoin lags the majority of the market.

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.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

Tezos price shows a steady grind toward its forecasted target. This development comes after a successful breakout from a bullish pattern. Investors can decide if they should hop on this train or stay away by looking at how XTZ reacts to an upcoming resistance level.

More Tezos news

Here’s what to do if you missed the recent AVAX price rally

Here’s what to do if you missed the recent AVAX price rally

AVAX price is likely to pull back after its 22% rally to the $25.83 support level, providing an opportunity for the next leg. The retracement is key in determining if it investors should add more to their holdings or consider booking profits.

More Avalanche news

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price has been hovering around a significant barrier for roughly three months with virtually no momentum to move above it. This development might be primed for a strong move but the directional bias remains unknown. 

More Shiba Inu news

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin price shows lackluster performance despite the announcement of BlackRock’s entry into crypto. Due to the spotlight on Ethereum and its upcoming Merge update, investors seem to be neglecting BTC.

More Bitcoin news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP