fxs_header_sponsor_anchor

Dogecoin Price Prediction: DOGE gains in jeopardy as multiple sell signals arrive

  • Dogecoin price witnessed another huge bull run which pushed it by nearly 560%.
  • The MRI flashed warning signs on the 4-hour and 1-day chart, suggesting that a retracement is likely.
  • A continuation of the bullish scenario will occur if DOGE shatters its recent top at $0.459.

Dogecoin price saw a parabolic run toward a new all-time high. Multiple time frames have flashed warning signs of an incoming retracement.

Dogecoin price consolidates

Dogecoin price rose by 560% since April 12, which propelled it from $0.07 to $0.45 within four days. Such a massive rise in DOGE isn’t surprising, considering a similar spike seen in January.

On the 4-hour chart, Dogecoin price appears to be consolidating, creating a base that could either catapult the meme coin higher or kickstart a correction to crucial demand barriers. 

The Momentum Reversal Indicator (MRI) helps provide clarity on this ambiguous situation. The red ‘one’ candlestick on the 4-hour chart suggests that the bull run has reached its peak. Since this setup forecasts a one-to-four candlestick correction, it is most likely that this consolidation will result in a downtrend.

Providing headwinds to this rally is the MRI’s preemptive top on the daily chart. This technical formation hints that the bull rally will shortly reach its top on the larger time frame, which paints a bearish picture.

Hence, a breach of the supply zone’s lower boundary at $0.302 should serve as the first sign of a corrective phase. In such a case, the DOGE price will retrace 21% toward the $0.240.

If the sellers overwhelm this level, a 28% pullback to the MRI’s breakout line at $0.173 should be the likely course of action.

DOGE/USDT 4-hour, 1-day chart

On the flip side, if the buyers restart the rally, Dogecoin price will slice through the upper boundary of its consolidation phase at $0.370, which will hint at rising bullish momentum.

If the all-time highs at $0.459 are toppled, it would seal the bullish fate and ignite a 35% upswing to $0.628, coinciding with the MRI’s breakout line.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.