- Dogecoin price staring at consecutive closes below the 50-day simple moving average (SMA) since November 2020.
- Daily volume has not closed above average since February 10.
- Squeeze formation puts DOGE traders on alert.
Dogecoin price is at an inflection point as two technical developments may ignite volatility and bring an end to the long drift sideways of the last month.
Dogecoin price holds a neutral bias for traders
DOGE is set to close today with a squeeze formation confirmation, and it may be the catalyst that shakes the bulls or bears from hibernation. The formation comes at a time when the altcoin will close below the 50-day SMA for the second day in a row, something that has not occurred since November 1-2, 2020.
In early March, the last squeeze formation generated a 30% spike over four days, including a one-day gain of 22% on March 8.
If the squeeze formation resolves to the upside, the first important resistance is the upper Bollinger and Keltner bands at $0.640. A daily close above the resistance will raise the odds that the rally will reach the 0.618 Fibonacci retracement level of the February crash at $0.074.
The clustering of long wicks above $0.080 in early February warns traders not to get too greedy and lock in profits. New all-time highs will have to wait for some months.
DOGE/USD daily chart
With Dogecoin price set to close below the 50-day SMA around $0.056 at the time of writing, SMA traders should be ready for a potential decline to the lower Bollinger and Keltner bands at $0.048. The next credible support is at the 0.618 retracement level of the bull market beginning November 2020 at $0.039. Further weakness will lead to panic and will likely erase a significant portion of the social media-driven gains.
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
Editors’ Picks

Ethereum Price Forecast: ETH consolidates below $2,000 as Standard Chartered alters its prediction for 2025
Ethereum remained just below $2,000 in the Asian session on Tuesday as Standard Chartered's Global Head of Digital Assets Research, Geoffrey Kendrick, updated the bank's 2025 price forecast for ETH.

Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary
Solana (SOL) stagnated around the $128 mark on Monday despite multiple bullish catalysts. The recent SOL unlocks by Alameda Research, ahead of FTX creditor repayments, have created a persistent bearish overhang since early March.

Canary Capital proposes first-ever Sui ETF following S-1 filing with the SEC
SUI saw slight gains on Monday as Canary Capital submitted an S-1 application with the Securities & Exchange Commission (SEC) to launch a Sui exchange-traded fund (ETF). This adds to the growing list of altcoin ETF filings awaiting approvals from the regulator.

Outflows in crypto funds reach $6.4 billion over five weeks amid long-term holder accumulation
Crypto exchange-traded funds (ETFs) extended their outflow streak last week, totaling $1.7 billion, bringing the total outflows in the past 5 weeks to $6.4 billion, per CoinShares weekly report on Monday.

Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation
Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.