- Dogecoin price is range-bound as it trades inside a horizontal parallel channel.
- Short-term bearish pressure will push DOGE to lean into the 50 one-day moving average (MA).
- A breakdown of this could push the meme coin down by 11% to $0.047.
Dogecoin price is at an inflection point that could help determine its direction for the foreseeable future.
Dogecoin price approaches a crucial level
Dogecoin price is range-bound between a supply barrier at $0.063 and a stable support level at $0.047 for almost a month. Drawing trendlines along these barriers results in a horizontal parallel channel.
The technical formation predicts a 25% move, and its direction is dependent on the breakout. Depending on which trendline is breached, Dogecoin could either surge to $0.078 or pullback to $0.032.
At the time of writing, DOGE seems to have been rejected by the upper trendline and is heading towards the lower boundary.
Due to the lack of volatility and capital inflow from investors, the 50 one-day MA is catching up to the Dogecoin price. If DOGE manages to bounce off this moving average, it could boost investor confidence and push the price higher.
In case of a decisive close above the upper-range at $0.063, then Dogecoin price could first rally 12% towards $0.070 and then climb another 11% to $0.078 if buyers continue to pile-up.
DOGE/USDT 1-day chart
It is worth noting that the optimistic scenario is dependent on Dogecoin price defending the 50 one-day MA. If DOGE slices through it for some reason, an 11% retracement to $0.047 is more than likely.
Here, the worst-case scenario would be for sellers to cut through the parallel channel’s lower trendline at $0.047, as this will invalidate the bullish outlook and trigger a 16% sell-off to $0.039. If the bearish momentum persists, then Dogecoin price might sell-off 20% to $0.032.
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
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.