The price of Dogecoin has now evolved into a tiny symmetrical triangular formation, indicating that the rally will continue.
DOGE is battling to break beyond the extreme barrier outlined by the decreasing trend line in May.
If the triangle resolves to the upside, the next resistance level is the 50-day simple moving average (SMA).
The dogecoin price rally from the 200-day SMA indicates a bullish start to a long-term upward trend. DOGE must resolve the symmetrical triangle encompassing price for the last five trading days in the near term. A 25 percent gain and a test of the 50-day SMA would result from a resolution to the upside. The meme token hasn’t tested this moving average since June 5.
Dogecoin is on track to end the quarter with a gain of almost 370 percent, putting it at the top of the internal watchlist, while Bitcoin is down -40 percent. Given the magnitude of the May-June DOGE adjustment, this is a tremendous achievement. The rally that began on June 22 was critical in obtaining the gain.
On June 22, with above-average volume and above-average volume, Dogecoin pricing built a major recovery off the 200-day SMA around $0.150, followed by the greatest day since the 25 percent gain on May 13. Big money bids tend to congregate towards actionable support levels that offer generous value, as evidenced by the rise in DOGE volume and purchasing conviction near the strategically key moving average.
The impact of the significant bid pushed Dogecoin’s price to the $0.288 intersection of May’s descending trend line and the $0.296 Fibonacci extension of the May-June decline. DOGE has been trading sideways since its June 25 high, relieving any price compression and establishing a symmetrical triangle pattern. A pattern that is characterized as a continuation pattern in most cases.
The calculated move is 25%, which translates to a goal of $0.345, just above the 50-day SMA of $0.338. If the cryptocurrency market receives a stronger bid, Dogecoin price might extend its breakout from the triangle to the 38.2 percent retracement at $0.384, giving DOGE investors a 40% gain.
Due to a cluster of market congestion around the price level dating back to late May and early June, a rise above the 38.2 percent retracement will be difficult. Nonetheless, it will place Dogecoin’s price on the right side of the instrumental moving averages, offering a base of support if DOGE suffers from weakness.
Graph of the DOGE/USD pair on a daily basis
If Dogecoin price resolves the symmetrical triangle to the downside, it will be a measured 25 percent move, with the ultimate target of $0.178. The plunge would pierce the support provided by the May 19 low of $0.195, bringing DOGE back near to the 200-day SMA. If the widely followed average fails to provide support, the June 22 low of $0.152 will be swept.
Dogecoin has a price advantage over most other cryptocurrencies. The strong reaction to the 200-day SMA shows that more notable investors were trading at those levels, which could provide some protection if DOGE is sold in the near term. Overall, the outlook is bright, but there is still the possibility of interference from the cryptocurrency market’s often wild gyrations./n
