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- DOGE witnessed an upswing of almost 30% within 24 hours after another tweet by Elon Musk
- The rally got cut short at the resistance level of $0.34
- The price is currently trading at a low of 35% from its ATH
On analyzing DOGE/USD on the 4-hour chart, we can see that the price action is wrapped in a symmetrical triangle chart pattern. Even though the DOGE price shot up by an impressive 30%, the lack of volume is suggesting that people have finally started to lose interest in this meme coin.
Today’s rally was shortened because of the price failing to breach the resistance level of $0.34. Aggressive sellers surround this particular resistance level, so the price of DOGE has been rejected twice in this range. Keeping in mind that the price action is confined inside a symmetrical triangle, there’s still time for it to approach the apex.
Sorce- tradingview
The practical play for Dogecoin would be to consolidate
Source- Tradingview
It would be ideal for DOGE to close above the $0.30 level (FIB 0.786). This would only be possible if the bulls stepped up to push the price. Price action on the 1-hour chart has depicted the descending triangle pattern followed by a green candle smashing right through it.
Although the price had a 15% retracement from its current surge, it is anticipated that the correction will last longer, as suggested by technical indicators.
The price of DOGE is above key EMA’s, which are providing support to the coin. The 20 EMA has already been tested as support once at $0.29.
The RSI has finally cooled down after being in the overbought territory for hours and is currently hovering in the range of 62 with no signs of bearish divergence.
The MACD line is extremely close from crossing below the signal line, demonstrating a bearish scenario.
CONCLUSION: For the DOGE price to reach its target of $1, its volume has to increase by tenfold. From what it looks like, the bears were eminent in gaining the upper hand as soon as the price touched the resistance zone of $0.34. Speculators should eye this particular resistance level and take entry after the price breaches this level accompanied by a retest.
SUPPORT : $0.25
RESISTANCE : $0.34
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
