DOGE price appears to have taken the form of a cup and handle structure on the daily chart, indicating a bullish outlook aiming for higher prices.
On Thursday, Dogecoin tested the June 25 high around $0.290. This implies that the bulls are determined to regain the multi-month DOGE price losses. This bullish bias is currently secured by the 50-day SMA support base at $0.221 forming the right side of a cup and handle chart pattern.
Note that the measured move of the cup and handle pattern for the Dogecoin price is 43% suggesting a price target of $0.405. The target falls short of the June 03 high above $0.45.
Dogecoin needs to breakout above the June 25 high of $0.290 and the handle high of $0.296 to overcome the selling pressure and take DOGE out of the handle. If this happens, the odds of an upward swing towards $0.45 will increase. This upswing will however be met by resistance by the 100-day SMA at $0.30 and the $0.330 resistance levels.
This bullish narrative is accentuated by the upward movement of the Moving Average Convergence Divergence (MACD) indicator above the zero line in the positive region. Moreover, the entry of the Relative Strength Index (RSI) into the overbought region shows that buyers are in control of the meme cryptocurrency.
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