• Dogecoin price prepped for a hefty price spike after it returns to $0.20
  • Bullish divergence is present, suggesting a downside move is likely to terminate.
  • Imperative that Dogecoin not close below the $0.15 value area.

Dogecoin price continues to trade at the upper bounds of a capitulation zone – something it has done since the beginning of December. Despite the bearish nature of Dogecoin’s price action, bears have been unable or unwilling to drive DOGE lower.

Dogecoin price needs to hit $0.20 before it can rally to $0.35

Dogecoin price has two primary scenarios coming up that could see it repeat the price action it experienced in early 2021. The first is a hypothetical long entry at $0.20, with a stop loss at $0.18 and a profit target at $0.35. This trade option would complete two objectives. First, it would confirm the breakout above a double-top. Second, and most important, it would convert Dogecoin back into a bull market after crossing above the current bear market trend line.

The hypothetical long setup is invalidated if Dogecoin price return to $0.155 before the entry. However, if a fall to $0.155 occurs, a capitulation move is undoubtedly on the horizon, with a possible move and flash-crash to the $0.09 value area.

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

However, Dogecoin could develop a nasty-looking bear trap by moving lower. If Dogecoin were to fall to $0.15, a Bullish Shakeout setup would occur. The Bullish Shakeout is a rare and powerful reversal pattern that terminates downtrends and corrective moves. Confirmation of that move would need to be established to ensure that a probable setup would be appropriate.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP