DogeCoin price has weak hands losing sight of a future 20% bull rally targeting $0.16
- DogeCoin has breached the parallel channel this week.
- DOGE price could rally 20% to $0.16
- An invalidation level for the bullish setup is at $0.1219
DogeCoin price should have one more wave up
DogeCoin price fooled traders this week as price impulsively blew past pullback zones. DogeCoin price has rallied since last week's thesis, establishing a new swing high at $0.1544. When analyzing the rally on the 2-day Chart, the popular meme coin seems to have breached the parallel trend channel, which fits standard Wave 3 criteria. Traders should expect more sideways price action and potential pullbacks into the $0.12 zone before the Dogecoin price makes its 5th Elliott wave run-up towards $0.16
DogeCoin price has added bullish confluence from the Fibonacci projection indicator. The 261.8% Fib level is a common target for fifth wave impulses and currently displays at $0.1674. The mid-$0.16 cent zone hints at a 20% rally in the coming weeks for the DOGE price, which sets up a 1.75 risk to reward ratio from today's current price of $0.1387.
DOGE/USD 2-Day Chart
Traders looking to be early should watch for buy signals amidst the current bearish correction while keeping their invalidation at $0.1219. If the $0.1219 level were breached, the overall uptrend would be deemed a failure. The bears would likely send DogeCoin into $0.11 and potentially the historical trend at $0.09, resulting in a 27% crash from the current DOGE price.
Author
FXStreet Team
FXStreet
