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Dogecoin Awaits Massive Breakout as Price Consolidation Exhausts; What to Expect?

Dogecoin
Image by Gerd Altmann from Pixabay

Yerevan (CoinChapter.com) – Dogecoin (DOGE), like many other cryptos, saw a tough week with consolidating prices. But there are optimistic hints ahead as indicated by technical analysis.

Symmetrical Triangle

For all of May, Dogecoin had been trading within a pattern called a symmetrical triangle. It entails two trendlines with similar slopes. One of them, the upper resistance line is capping the token’s upward attempts. The bottom support line prevents the price from sharp declines.

The bias of the token before the formation occurred determines the continuation pattern. As Dogecoin was bullish before it entered the symmetrical triangle, the chances of a bullish breakout are greater than for a bearish continuation.

Dogecoin facing a bullish breakout. Source: DOGEUSD on Tradingview.com
Dogecoin facing a bullish breakout. Source: DOGEUSD on Tradingview.com

Read more: Gains Ahead For Dogecoin? This Technical Indicator Suggests So

Dogecoin could see a $0.95 value in the upcoming sessions if the symmetrical triangle prediction has merit. However, the charts also exhibited indications of a reverse trajectory.

Bearish Indicators

The Fibonacci Retracement indicator attempts to pinpoint the upcoming stock price or a token, using levels prompted by the Fibonacci sequence. According to the indicator, Dogecoin was at the 61.8 percent level in the London trading session Tuesday. The 100 percent, i.e., the end of the sequence, will take the token down as far as the $0.05 margin.

Moreover, Doge faced a death cross between the 20-day exponential moving average (EMA-20) and the 50-day moving average(MA-50). The former crossed down below the MA-50 on Monday, which is a bearish indicator. The death cross predicts further losses in the upcoming sessions unless the EMA-20 manages to cross back on top.

Read more: Dogecoin Price Will Crash To Zero, Asserts Analyst

Dogecoin Volatility

Dogecoin is notorious for being quite unpredictable and volatile. However, it is the 7th largest crypto with a market cap of $39.5 billion as of writing. Dogecoin is actively promoted online, especially on social media platforms, and has a few outspoken and wealthy proponents. One of them is Elon Musk, the chief executive of Tesla and SpaceX.

The billionaire entrepreneur constantly tweets about the meme-coin, boosting the demand, and subsequently, the price. He has admitted before that “it’s fun” trading Doge. However, seasoned experts advise against giving in to the hype and investing more than one can afford to lose.

Read more: Elon Musk’s Dogecoin Adventures Could Leave Bitcoin in Legal Trouble

The daily volatility of Dogecoin is too high to make any predictions with concrete certainly. Currently, the token is facing two opposite trajectories, both of which have merit. The symmetrical triangle formation backs the bullish scenario, and the Fib retracement and the death cross support the bearish outcome.

Traders watch closely as the upcoming sessions will decide their gains or losses.

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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