According to crypto analyst Yashu Gola, the head and shoulders pattern emerging on Dogecoin (DOGE) charts shows that there is no positive sentiment among DOGE investors.
“Dogecoin price turns eyes below $0.10”
As we have covered in the news of Kriptokoin.com, Tesla CEO Elon Musk’s offer to buy Twitter last week’s short Dogecoin The (DOGE) price rally seems to be failing as DOGE closes the week above 8%.
DOGE’s price dropped to $0.142 on April 17, three days after hitting $0.149 locally. The Dogecoin correction, albeit modest, increased the potential to trigger a classic bearish trend with an 85% success rate in meeting its downside target.
The so-called head and shoulders (H&S) pattern occurs when the price forms three successive peaks, the middle one called the ‘head’, between the other two, almost equal height and this is why the left and right are called “shoulders”.
These three peaks are above a common support level called the ‘neckline’. As theory goes, price typically drops below the neckline after forming the third peak or right shoulder, and drops by the maximum height of the H&S, i.e. the distance between the top of the head and the neckline.
Analyst states that DOGE has formed a similar structure since at least March 24. According to the analyst, the cryptocurrency now forms its right shoulder, followed by a drop to the neckline followed by a full-fledged bearish breakout as shown in the chart below.
DOGE daily price chart / Source: TradingView All in all, the analyst says Dogecoin seems more likely to correct towards the H&S neckline around $0.132 and is around 7.5% of today’s price. It means under. The level coincides with DOGE’s 50-day simple moving average (50-day SMA; blue wave), thus providing additional support. The analyst comments:
A decisive break below the support confluence could trigger an H&S setup and the downside target could go below $0.1, which is almost 30% below today’s price. Interestingly, the target looks close to the lower trendline of the descending channel pattern that covers Dogecoin’s price movements since December 2021.
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