Dogecoin Price Prediction: DOGE at make-or-break point after new all-time highs
|- Dogecoin price remains indecisive after setting up record highs on May 4 at $0.611.
- The MRI has flashed a reversal signal, indicating that DOGE might retrace.
- A spike in bullish momentum due to FOMO among buyers could result in a new all-time high at $0.561.
Dogecoin price is at a crossroads as a technical indicator hints at a reversal, but bulls seem to be opposing that idea and want to rally.
Dogecoin price shows potential to surge higher
Dogecoin price is trading at $0.571 on the 4-hour chart after erecting a new all-time high at $0.611. The Momentum Reversal Indicator (MRI) has flashed a sell signal in the form of a red ‘one’ candlestick, indicating that the cycle has topped.
Interestingly, this move comes as DOGE hit a blockade at the 161.8% Fibonacci extension level at $0.561. The MRI’s current setup forecasts a one-to-four candlestick correction. Hence, from a technical point of view, Dogecoin price could retrace.
Despite this bearish signal, DOGE has dropped only 4% and reveals that the buyers are propping up Dogecoin price, which could result in reentry into the price discovery phase.
If such a move were to occur, the meme-themed cryptocurrency might shatter its all-time high and test the 200% Fibonacci extension level at $0.64. Under special circumstances, if the buying pressure persists, Dogecoin price could surge 19% to tag $0.766, coinciding with the 261.8% Fibonacci extension level.
However, failing to slice through $0.611 could cause the meme coin to drop 22% to retest the demand zone, extending from $0.397 to $0.451.
DOGE/USDT 4-hour chart
While a 22% downswing seems extreme, it will allow the buyers to recuperate and prepare for the next run-up. However, a breakdown of the support barrier at $0.371 will indicate that the sellers are overwhelming the buyers and will invalidate the bullish thesis.
In such a case, Dogecoin price will retrace to the 50% Fibonacci retracement level at $0.333
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.