With a measured advance of nearly 80%, the Dogecoin price has completed a head-and-shoulders pattern.
Investors in DOGE have been unable to break through the unyielding resistance defined by May’s declining trend line.
The neckline at $0.155 is aligned with the anchored VWAP from January 28, offering a roadblock against bearish objectives.
Since the June 25 recovery high, the Dogecoin price has had an uninteresting investment environment, as May’s descending trend line has successfully blocked each daily rally attempt. DOGE is expected to continue erasing the 95 percent bounce from the 200-day simple moving average (SMA) on June 22 and trigger the head-and-shoulders pattern as long as the trend line maintains its technical presence.
The emerging head-and-shoulders pattern adds a bearish twist to the price structure that has been developing since April and establishes a sturdy entry price should Dogecoin price continue to fall. May’s declining trend line, currently at $0.209, is enforcing the right shoulder’s resistance, formalizing an unusual technical obstacle for DOGE over the last two weeks.
The head-and-shoulders pattern’s calculated advance is 82 percent, putting the DOGE price goal at $0.028 and returning Dogecoin to levels last seen in early February. It would be an outstanding climax to one of the most fascinating and divisive stories in the cryptocurrency complex in 2021.
A DOGE drop to the goal price isn’t a foregone conclusion. The layered support defined by the May 19 low of $0.195, the 200-day SMA at $0.175, the Anchored VWAP and neckline at $0.155, and the April 23 low of $0.135, will have to be overcome. If the meme token ultimately chooses a negative conclusion to the stagnant price action, a drop to the April 23 low would imply a 30% loss from the current price and would be a more realistic target.
Should the cryptocurrency market experience a major sell-off, Dogecoin’s price will be drawn to the support provided by the $0.029 high from January 29.
Graph of the DOGE/USD pair on a daily basis
DOGE investors who register a daily closing above $0.229 can expect a better outcome for Dogecoin pricing. It is possible that the digital asset will be released to test the descending 50-day SMA at $0.286, representing a 20% gain from $0.229.
The price of Dogecoin has dropped in line with the reality of the charts, ending a period of relentless rises spurred by FOMO. As a result, DOGE is on the verge of collapsing again, wiping out a big portion of its profits from 2021.
With DOGE’s back against the wall, it’s critical to remind investors that previous performance is no guarantee of future outcomes.
FXStreet’s analysts assess where DOGE might be headed next./n
