• Dogecoin has rallied 25% in a week.
  • The Volume Profile Indicator has stayed relatively low during the ascension.
  • Invalidation of the downtrend will result from a breach above $0.112.

Dogecoin price prediction could be a sucker's rally. Placing a short entry will be justifiable if bulls cannot hold support above $0.085.

Dogecoin price digs deep

Dogecoin price prediction shows reasons to be concerned. Analysts have been eyeing the notorious dog coin throughout the summer as the DOGE price fell into considerably discounted price territory at $0.050. Several bullish outlooks were forecasted, some mentioning the possibility of a potential market bottom near the $0.049 low established on June 19, 2022. Dogecoin price has been able to rally 25% since the last thesis was published, but the strength of the move merits concern for the mid-term targets and FOMO-style bull run that everyone is hoping for.

Dogecoin price currently trades at $0.0842 as price consolidates near a previous support zone that the bears successfully breached during an early May liquidation. This is  the first time DOGE price will be reacquainted with the breached barrier since the plummet. Classical price action techniques suggest that the mid-$0.08 barrier will likely act as resistance and reject uptrend momentum. The volume profile indicator supports  this idea as the bulls have not yet displayed an increase in transactions relative to previous bull runs. 

tm/doge/8//17/22

DOGE/USDT 1-Day Chart

When combined, it appears that the Dogecoin price could be articulating a sucker's rally-style retracement before the next sell-off occurs. Investors should be aware that the notorious dog coin has strong confluences pointing to a $0.020 price zone (mentioned in previous outlooks). Subsequently, the DOGE price could fall as low as $0.010 without invalidating the bullish macro count.

Still, an invalidation point of the downtrend scenario is necessary to define the correct trend. The bearish thesis will be void if the bulls can break through $0.112. In so doing, the DOGE coin price will be able to rally towards a conservative $0.250 target resulting in a 150% increase from today's market value.

In the following video, our analysts deep dive into the price action of Dogecoin, analyzing key levels of interest in the market. -FXStreet Team

 


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

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