Dogecoin Price Prediction: A smart money trap hiding in plain sight


 

  • Dogecoin has been up 12% since the beginning of October.
  • The DOGE price failed to breach the previous swing high and shows a lack of momentum despite an influx of volume.
  • Invalidation of the bearish thesis is a closing candle above $0.068.

Dogecoin price could be displaying evidence of a smart money trap. A sweep the lows event is in the cards. Key levels have been identified.

Dogecoin price could re-route south

Dogecoin price is currently up 12% to start the month of October as the bulls pulled off an impressive 10% rally earlier in 24 hours. An influx of volume has poured in as sidelined investors speculate the move is just the beginning of a long overdue DOGE pump. Although the possibility for more returns does look promising, there are a few factors that investors should keep in mind to suggest otherwise.

Dogecoin price currently auctions at $0.064 as consolidation takes place near the newfound monthly highs. A key ingredient to decipher the next move for the DOGE price is hiding in plain sight. At the current time, the DOGE price has failed to close above the previous swing high in October. This subtle display of resistance is also shown on the Relative Strength Index (RSI) on larger time frames as DOGE is still within bounds of previous resistance.

tm.10/5/22

DOGE/USDT 12-Hour Chart


When combining these factors, early bulls should be very cautious. The influx of volume without breaking the previous swing high can be viewed as a weakening retaliation. If this is indeed the case, the liquidity level underneath the origin point of October’s rally at $0.058 is at risk of a breach. Such a move would result in an 11% decline from the current Dogecoin price.


Invalidation of the bearish thesis is a closing candle above $0.068. The bulls must show more momentum on the RSI as well. If the invalidation level is breached, the Dogecoin price could rally as high as the mid-point of the previous decline at  $0.075. Said price action would result in a 20% increase from the current market value.

 In the following video, our analysts deep dive into Dogecoin's price action, analysing key market interest levels. - 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

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

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