- Dogecoin price hits a new three-week high.
- Rally halted against two primary resistance levels.
- Some profit-taking after a big rally expected, downside risks limited.
Dogecoin price is coming off of some intense buying pressure that capped off prices levels not seen since January 17, 2022. As a result, a slight pause here should be expected as bulls and bears digest the recent rally.
Dogecoin to return to $0.250 after pullback to $0.155
Dogecoin price hit its primary resistance level on the daily Ichimoku chart against the Kijun-Sen and bottom of the Ichimoku Cloud (Senkou Span A) at $0.170. A pullback to the $0.155 level at the daily Tenkan-Sen will be critical for the future upcoming trend.
If the Tenkan-Sen holds as support, then it is very likely that a new bullish expansion phase will begin for Dogecoin. Therefore, a future breakout on the daily chart should not be overly complicated. From today (February 8, 2022) until February 16, the Ichimoku Cloud gets thinner. Thin clouds represent weakness and are generally easy for prices to move through.
However, the top of the Cloud (Senkou Span B) at $0.180 will likely halt Dogecoin price again. Senkou Span B is the strongest support and resistance level within the Ichimoku system. Therefore, it is the most challenging place for price to close above or below.
If Dogecoin price can close above Senkou Span B at or above $0.180, then the daily Chikou span would also be above the bodies of the candlesticks and in open space. In other words, Dogecoin will fulfill all the requirements needed for an Ideal Bullish Ichimoku Breakout. In addition, it would be the first time that Ichimoku entry has occurred since October 18, 2021.
DOGE/USDT Daily Ichimoku Kinko Hyo Chart
A swift move to the $0.250 price level would be the next test for Dogecoin price bulls. The level at $0.250 is where the weekly Kijun-Sen exists.
Downside risks should be limited to the Tenkan-Sen at $0.155. Below that, bulls will need to be cautious. A daily close at or below $0.130 would initiate an Ideal Bearish Ichimoku Breakout and could see Dogecoin price enter into capitulation territory with a move down to the $0.080 - $0.090 value area.
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
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.
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.
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.
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.
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.
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.