Dogecoin may outperform Shiba Inu as DOGE presents buying opportunity before hitting $0.25

Dogecoin price recovers from Monday selling pressure.
Higher low developed on the daily chart.
Robust bullish reversal setup on the candlestick and Point and Figure charts.

Dogecoin price has been performing well during the Tuesday trade session, moving up more than 4% for the day and exceeding Monday’s open and high. If this price action and bounce continue, then DOGE will have an easy path to revisit $0.25.

Dogecoin price action gives two good reasons to be bullish

Dogecoin price is still developing the right shoulder of a possible inverse head-and-shoulders pattern. Bulls will face two primary resistance levels as DOGE approaches the neckline of this pattern. The first is the Tenkan-Sen at $0.155, and the second is the neckline itself at $0.165.

DOGE/USDT $0.005/3-box Reversal Point and Figure Chart

The oscillators support a breakout above the neckline to confirm the inverse head-and-shoulders pattern and a breakout above it. The Optex Bands have returned to neutral conditions, indicating prime conditions for a sustained rally. Additionally, the Relative Strength Index is exceptionally close to the first oversold level in a bear market, 55.

Dogecoin price has been handily rejected on the candlestick chart when the RSI is at or near the 55 level; a behavior DOGE has exhibited since November 2021 – until now. Lastly, the hidden bullish divergence between the candlestick chart and the Composite Index warns of a strong bullish reversal from the current minor pullback.

The daily Ichimoku chart compliments the Dogecoin price buying opportunity present on the $0.005/3-box reversal Point and Figure chart. The theoretical long entry is a buy stop order at $0.165, a stop loss at $0.145, and a profit target at $0.260. The profit target is derived from the vertical profit target method in Point and Figure analysis. The trade setup represents a 4.75:1 reward/risk with an implied profit target of 61% from the entry.

DOGE/USDT $0.005/3-box Reversal Point and Figure Chart

A trailing stop of two to three boxes would help protect any profit made post entry. The theoretical long entry for Dogecoin price is invalidated if Dogecoin price has a daily close at or below $0.13.

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