Dogecoin (DOGE) Provides Buy Opportunity Before 50% Breakout

  • Dogecoin forms an inverse head-shoulder formation, indicating a 53% price move.
  • Meanwhile, Dogecoin requires a daily close past $0.30 to confirm the anticipated upswing.
  • With increased selling pressure to create a lower low under $21, the bullish narrative will fade.

Dogecoin had traded below a critical obstacle for nearly five months. Though the original canine-themed crypto enjoyed a rally on 28 October, it did not conquer the challenge, and DOGE dipped into consolidation. Nevertheless, the magnified coiling up indicated that Dogecoin is waiting for a price breakout.

Dogecoin Price Preparing a Massive Upswing

Dogecoin experienced three swing lows from 16 August, confirming an inverse head-shoulder shape. This technical formation comprises two swing lows with different depths resulting in the shoulders, the central one being briefly deep than the head. Connecting the swing lows’ peaks creates a neckline, an obstacle before the meme asset confirms a breakout. This setup predicts a 53% upswing to $0.45.

Though DOGE almost breached the neckline on 8 November, the bulls weakened before accomplishing that. Meanwhile, a daily close beyond $0.28 would theoretically suggest a breakout and kick-start the 53$ upsurge. Market players need to wait for the crypto to create a higher high beyond $0.30 for Dogecoin to enter a resistance-free road.

That can see the alt inside the liquidity pool in the $0.34 – $0.37 range. Overcoming the pit stop at this level might see the meme crypto rallying higher for a swing high near $0.45. That would mean a 70% upswing from DOGE’s current price level.

Though Dogecoin appears lucrative, a daily close under the demand territory in $0.21 – $0.26 would cancel the bullish case. Such a move can catalyze more drops for DOGE to explore $0.19. Remember that the altcoin sustains bearishness today as the overall crypto market tumbled in the past 24 hours.

That was after $0.29 solidified its attempt to rise early today, consolidating at the $0.28 mark. DOGE/USD has chances to drop once more and form a higher low before experiencing further upswings.

What are your thoughts on the meme coin market as the overall crypto dipped in red today? You can comment below.