- Dogecoin price action since May 3, 2021, has set up a multi-month falling wedge pattern, hinting at an explosive move.
- Since its breakout, DOGE is consolidating before triggering its 75% upswing to $0.216.
- A weekly candlestick close below $0.11 will invalidate the bullish thesis for DOGE.
Dogecoin price seems to be favoring the bulls as lost gains this week are in recovery mode. A continuation of this trend is likely to kick-start the exponential run-up for DOGE.
Dogecoin price coils before an explosion
Dogecoin price action between May 3, 2021, and March 14 created four lower highs and five lower lows on a weekly chart. Connecting these swing points using two trend lines results in a falling wedge formation.
This technical formation forecasts a 75% run-up to $0.216, determined by adding the distance between the first swing high and low to the breakout point at $0.123. DOGE produces a weekly candlestick close above the falling wedge’s upper trend line in the last week of March, signaling a breakout.
However, the following week saw massive profit-taking and downturns due to Bitcoin’s flash crash, undoing the 28% gains.
Regardless, DOGE has rallied nearly 5% today and is currently trading around $0.150. A continuation of this uptrend could result in 42% gains. A local top is likely to form around $0.216, which is the theoretical target for DOGE.
In a highly bullish case, where buying pressure builds up, investors expect the Dogecoin price to extend to the next hurdle at $0.322. This move would bring the total gain to 113%.
DOGE/USDT 1-day chart
While the outlook for DOGE is optimistic, a sudden U-turn for the big crypto could ruin this textbook falling wedge setup.
A weekly candlestick close below $0.11 will create a lower low and invalidate the bullish thesis for the Dogecoin price. Such a development would open the path for DOGE to crash to $0.087, where sidelined buyers or long-term investors might step in to give the uptrend another go.
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.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.