Dogecoin Price Prediction: DOGE anticipates 20% drop in favor of bears
|- Dogecoin price has printed a bearish chart pattern that suggests the token is awaiting a 20% plunge.
- To void the bearish outlook, DOGE must close above the 100 four-hour SMA at $0.196 and the 200-day SMA.
- The upside potential for Dogecoin price is extremely limited in the short term.
Dogecoin price has appeared to have shown a technical pattern that suggests a bearish forecast, with a target of nearly 20% in favor of the bears. DOGE is little room to move on the upside, with a great deal of resistances obstructing any bullish momentum.
Dogecoin price confronted by bearish technical pattern
Dogecoin price has formed a head-and-shoulders pattern on the 4-hour chart, suggesting that DOGE is expecting a move to the downside.
If the pattern is robust, it can be used to anticipate price moves. The governing chart pattern offers a bearish outlook, and DOGE anticipates a massive sell-off.
The targeted move for Dogecoin price appears to be 19% by calculating the distance between the head and the neckline.
As a result, DOGE could fall to the measured target of $0.163, a 19% decline from the neckline should selling pressure increase.
However, Dogecoin price is currently supported by the 100 four-hour Simple Moving Average (SMA), which acts as a critical line of defense for DOGE.
DOGE/USDT 4-hour chart
Should the canine-themed token slice through the 100 four-hour SMA at $0.196 and close below this level, this could spell trouble for the bulls, forcing Dogecoin price to search for support at the 78.6% Fibonacci retracement level at $0.187.
If buyers do not step in at this level, Dogecoin price could fall further into the demand zone that starts at $0.179 before eventually reaching the lowest target given by the prevailing chart pattern at $0.163.
On the flip side, should Dogecoin price decide to effect the reversal of fortune by recovering back above $0.204, the upside potential for DOGE still appears to be quite limited.
The 20 four-hour, 50-hour and 200-hour SMAs all suggest that the token would see tremendous resistance at $0.207, just slightly below the 61.8% Fibonacci retracement level.
The Intotheblock In/Out of the Money Around Price (IOMAP) data shows that a massive obstacle is awaiting Dogecoin price, where 53,760 addresses bought 11.37 billion DOGE at $0.207.
Dogecoin IOMAP
It will take compelling upside release for Dogecoin to reverse the period of underperformance and to retest the July 26 high again at $0.233.
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.