• Dogecoin price is on the verge of a 68% breakout from a falling wedge.
  • Investors can expect DOGE to trigger an exponential growth to $0.23.
  • A weekly candlestick close below $0.078 will invalidate the bullish outlook.

Dogecoin price has been consolidating inside a massive falling wedge pattern, that is edging closer to a breakout. A decisive move above the upper trend line could be the key to triggering an uptrend for DOGE.

Moreover, 4/20 is celebrated as a meme day, the chances of the original meme coin aka Dogecoin pumping are high. Therefore, investors need to keep a close eye on dog-themed coins that have the support of Tesla CEO, Elon Musk aka the Dogefather.

Dogecoin price to retrace its steps back higher

Dogecoin price crashed roughly 85% from its peak at $0.740 to $0.109 in roughly 308 days, This downswing has produced three distinctive lower highs and lower lows, which when connected using trend lines reveal a falling wedge pattern.

The said technical formation forecasts a 68% upswing, obtained by adding the distance between the first swing high and swing low to the breakout point. Since last week, Dogecoin price has edged closer to the upper trend line in an attempt to break higher. 

Interestingly, DOGE is already hovering above the upper trend line but a confirmation of the breakout is not here yet. Assuming a breakout occurs around $0.140, extrapolating shows that the target after a 68% upswing will be $0.233.

DOGE/USDT 1-week chart

DOGE/USDT 1-week chart

Perhaps the most important on-chain metric that aptly reveals the bullish outlook for Dogecoin price is the 365-day Market Value to Realized Value (MVRV) 

This on-chain metric is used to determine the average profit/loss of investors that purchased DOGE over the past year. Based on Santiment’s research, a value below -10% indicates that short-term holders are at a loss and are less likely to sell. More often than not, this is where long-term holders accumulate. Hence, any move below -10% is termed an “opportunity zone.” 

For DOGE, the 365-day MVRV has been hovering below zero line since October 2021 and has been stuck below -30% since December 2021, indicating the wildly oversold nature of the altcoin and why it is bound to rally sooner rather than later.

DOGE 365-day MVRV

DOGE 365-day MVRV

Regardless of the bullish narratives, a weekly candlestick close below $0.078 will invalidate the bullish outlook. In this situation, investors need to prepare for a potential crash to $0.048.

 


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

Recommended content


Recommended Content

Editors’ Picks

Three reasons why Chainlink could rally

Three reasons why Chainlink could rally

Chainlink has noted accumulation by large wallet investors for the past two weeks. Nearly $110 million in LINK has been withdrawn from exchanges in this time period. LINK sustained above $13 on Sunday, extending gains by nearly 1%. 

More Chainlink News

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple rallied over 19% in the past seven days per CoinGecko data. The altcoin broke past resistance at $0.50 on the one-year anniversary of Judge Analisa Torres’ XRP ruling. 

More Ripple News

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin extended gains post the shooting at the rally of US Presidential candidate Donald Trump. The former President is a pro-crypto candidate, and a report by Fortune shows that Trump’s chances of winning the race increased after the Saturday events.

More Bitcoin News

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum (ETH) traders are watching two key events closely: the anticipated approval of the Spot Ether ETF and the activities of whales, the large wallet investors holding ETH. An analyst has predicted that the odds of Spot Ether ETF is 72.7% this week. 

More Ethereum News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP