Dogecoin price may end the year-long downtrend, DOGE targets $0.25
|- Dogecoin price has been in a downtrend for over a year.
- Critical breakout zone ahead could initiate an uptrend.
- Downside risks remain a concern but should be limited in scope.
Dogecoin price remains under significant pressure from sellers. DOGE is down more than 83% from its all-time high, and volume participation is near all-time lows. However, lower highs may be forming and could be a precursor no a new expansion move higher.
Dogecoin price is positioned for a push above $0.20
Dogecoin price action, from an Ichimoku perspective, is clearly bearish. All conditions necessary for an Ideal Bearish Ichimoku Breakout are present. However, bears have been unable or unwilling to capitalize on this bearish setup.
In many ways, Dogecoin price is showing some resilience. Compared to many other altcoins, DOGE is off its 2022 lows and is developing a strong area of support.
If bulls want to begin a new uptrend, several resistance levels must be broken first. There is a massive resistance cluster between $0.134 and $0.157. The technical levels contained in that range are:
- The Tenkan-Sen at $0.134
- The 2022 Volume Point of Control at $0.141
- The Kijun-Sen at $0.147
- The bottom of the Ichimoku Cloud (Senkou Span B) at $0.143
- The top of the Ichimoku Cloud (Senkou Span A) at $0.152
- The 50% Fibonacci expansion level at $0.157
Such a large collection of resistance levels in a tight range is rare, but it provides a clear picture of how big of an expansion move Dogecoin could make if it successfully breaks that cluster.
DOGE/USDT Daily Ichimoku Kinko Hyo Chart
The projected target range for Dogecoin price on a successful breakout would be the 161.8% Fibonacci expansion at $0.273. $0.0273 is just shy of the 38.2% Fibonacci retrace of the February 24, 2022 swing low to the top of the weekly strong bar on May 14, 2021.
Downside risks exist but are probably limited to the lower trendline of a prior descending wedge pattern at the critical and psychological price level of $0.10.
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.