Key Takeaways
- Dogecoin (DOGE) trades inside the $0.225 horizontal area.
- The DOGE price trades inside a short-term symmetrical triangle.
- Can Dogecoin break out from the triangle and resume its ascent?
Dogecoin (DOGE) has doubled in price since April 7, peaking at $0.259 on May 11.
While the memecoin has pulled back slightly since then, the drop appears to be part of a healthy correction, potentially setting the stage for another move higher.
With DOGE approaching the end of its consolidation pattern, the big question is whether it’s gearing up for a breakout and what the next price target could be.
DOGE Price Returns to Support
The weekly time frame Dogecoin analysis shows that the price has increased alongside an ascending support trend line since October 2023.
In April, Dogecoin’s price bounced off the trend line, increasing by 100% and breaking from a descending resistance trend line.
More importantly, Dogecoin broke out from the $0.25 horizontal resistance area. Today, DOGE is attempting to validate this price level as support.
If successful, DOGE could begin another upward movement toward the 0.618 Fibonacci retracement resistance at $0.348.
Technical indicators show bullish signs. The Relative Strength Index (RSI) is at 50 (black circle), while the Moving Average Convergence/Divergence (MACD) made a bullish cross.
Therefore, the long-term trend remains bullish if Dogecoin stays above the $0.225 horizontal support area.
If it does, a price and technical indicator bounce will likely take DOGE to the next long-term resistance at $0.348.
What’s Next for DOGE?
Like the weekly time frame, the six-hour one gives a bullish Dogecoin prediction, suggesting a breakout is imminent.
The wave count shows a highly bullish 1-2/1-2 wave formation. If the count is accurate, DOGE is completing sub-wave four (black) in wave three.
Sub-wave four has developed into a symmetrical triangle. A breakout from the triangle will accelerate the rally toward $0.305-$0.348.
The hidden bullish divergences (orange) in the RSI and MACD support this outlook.
Therefore, a breakout from the triangle will confirm the DOGE trend is bullish and will take the price to new highs.
Dogecoin Breakout Incoming
Dogecoin’s rally has hit a temporary roadblock since May 10, leading to a slight decline.
However, the memecoin is consolidating inside a neutral pattern and could break out soon.
A Dogecoin breakout will confirm the bullish trend and can take the price to $0.348.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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