- Dogecoin price action since May 3, 2021, has set up a multi-month falling wedge pattern, hinting at an explosive move.
- Since its breakout, DOGE is consolidating before triggering its 75% upswing to $0.216.
- A weekly candlestick close below $0.11 will invalidate the bullish thesis for DOGE.
Dogecoin price seems to be favoring the bulls as lost gains this week are in recovery mode. A continuation of this trend is likely to kick-start the exponential run-up for DOGE.
Dogecoin price coils before an explosion
Dogecoin price action between May 3, 2021, and March 14 created four lower highs and five lower lows on a weekly chart. Connecting these swing points using two trend lines results in a falling wedge formation.
This technical formation forecasts a 75% run-up to $0.216, determined by adding the distance between the first swing high and low to the breakout point at $0.123. DOGE produces a weekly candlestick close above the falling wedge’s upper trend line in the last week of March, signaling a breakout.
However, the following week saw massive profit-taking and downturns due to Bitcoin’s flash crash, undoing the 28% gains.
Regardless, DOGE has rallied nearly 5% today and is currently trading around $0.150. A continuation of this uptrend could result in 42% gains. A local top is likely to form around $0.216, which is the theoretical target for DOGE.
In a highly bullish case, where buying pressure builds up, investors expect the Dogecoin price to extend to the next hurdle at $0.322. This move would bring the total gain to 113%.
DOGE/USDT 1-day chart
While the outlook for DOGE is optimistic, a sudden U-turn for the big crypto could ruin this textbook falling wedge setup.
A weekly candlestick close below $0.11 will create a lower low and invalidate the bullish thesis for the Dogecoin price. Such a development would open the path for DOGE to crash to $0.087, where sidelined buyers or long-term investors might step in to give the uptrend another go.
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
Crypto Today: Bitcoin crumbles under German government transfers, Ethereum and Ripple erase gains
Bitcoin trades below $57,100 on Thursday as German government transfers continue, $76 million BTC moved to exchanges. Ethereum trades near $3,100 ahead of the upcoming SEC decision on the Spot Ethereum ETF.
Ripple traders take over $75 million in losses in July, XRP drops below key support
Ripple (XRP) price is under fresh selling pressure and tests key support at the June 7 low of $0.4508 on Thursday as whales are likely capitulating, according to on-chain data.
Bitcoin price declines as supply on exchanges rises
Bitcoin faced rejection at the daily resistance level of $63,956 on Monday, resulting in a 4.2% decline over the next two days. BTC’s price extends its downward move and falls below $58,000 on Thursday, adding more than 4% losses in the day.
Worldcoin is poised for 17% rally as as technical indicators signal bullish momentum
Worldcoin price finds support and bounces 9% from the weekly support level around $2.183. Technical analysis shows that WLD has formed a bullish divergence on a momentum indicator.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.