Dogecoin (DOGE) price is preparing for a crucial line of defense that it must protect before a rally. However, given the recent poor performance against peers such as the Shiba Inu, the bulls expect some relief from the current 281 days of stagnation and downtrend. We have compiled the price predictions of crypto analysts who determine the critical levels ahead for the readers of Kriptokoin.com.
DOGE price trying to break out of downtrend
DOGE is stuck in a descending parallel channel as it failed to attract investors’ attention. The Arms Index (TRIN), which measures overall market sentiment, shows that there are more buyers than sellers in the market. If Dogecoin price manages to stay above the 200-day SMA at $0.13, it could start a relief rally towards $0.24, resulting in a 71% increase, according to trader Sarah Tran. On the other hand, the 21-day SMA at $0.15, followed by the central border of the formation at $0.16, coincides with the 23.6% Fibonacci retracement level, could be the first barriers to Dogecoin price.
If the buying pressure increases, Dogecoin could hit its bullish target of $0.24, which is the upper limit of the parallel channel. If there is an increase in sell orders, Dogecoin’s price could test the 200-day SMA at $0.13 as critical support. If this level fails to hold, DOGE could drop below the January 22 low of $0.12. If the selling pressure continues, the analyst expects the price to drop to the lower end of the pattern at $0.11.
Jonathan Morgan shares his ideal Dogecoin long position setup
On the Dogecoin chart, an inverted head-and-shoulders pattern develops as a reversal rather than bullish pattern as a result of multiple upswings. If this pattern is activated, it could generate the momentum needed to push Dogecoin price to the Ideal Bullish Ichimoku Breakout on the daily chart and also pull it back to the crucial $0.25 level.
Dot & Figure chart with $0.005/3 box reversal for DOGE completes a candlestick reversal pattern. The potential trade setup, according to the analyst, is a buy order on the current O-three box column reversal ($0.165 at the time of writing). The profit target is $0.26 and the stop loss is a four-box stop based on the Vertical Profit Target approach in Point and Figure analysis.
If Dogecoin price drops and one or more O’s appear in the current O column, a buy stop entry and a four box stop move with the price. The profit motive remains unchanged. If the current O column generates an O with $0.11 value, the hypothetical long position is void. The analyst thinks that Dogecoin will definitely enter a capitulation zone in this case and test the $0.08 or $0.09 value levels.
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