Home Correction trading Assess the direction of the Dogecoin price trend to identify trading opportunities

Assess the direction of the Dogecoin price trend to identify trading opportunities

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  • Dogecoin price is crossing a bullish descending triangle on a four-hour chart, suggesting an 18% breakout.
  • A decisive move above $0.087 will confirm a move that will likely propel DOGE to $0.10.
  • If the sellers produce a four-hour candle near $0.076, this will indicate a bearish breakout and lead to a crash at $0.062.

Dogecoin price is trading with the downtrend line of a triangle and horizontal support. This winding is likely to lead to a volatile breakout that will propel DOGE or lead to an abrupt correction. Thus, investors should be patient and wait for confirmation of the directional bias before leaning one way or the other.

Dogecoin price portends an explosive move

Dogecoin price has established four lower highs and three equal lows since May 12. Connecting these swing points describes a descending triangle that predicts an 18% move obtained by adding the distance between the first high and the low of the swing at the breakout point.

Triangles can break out either way, but assuming Dogecoin price follows Bitcoin, which is likely to experience a relief rally, the odds of a breakout are high. In this case, investors should wait for a decisive four-hour candlestick to close above $0.087 confirming that the buyers are back.

A reversal of the aforementioned level will lead Dogecoin price to retest the $0.10 hurdle. This move would constitute an 18% gain from the breakout point at $0.084 and 15% if measured from the $0.087 barrier.

DOGE/USDT 4-Hour Chart

While things look bullish for the price of Dogecoin, investors should understand that this optimism is derived from Bitcoin and its potential movement. Therefore, a sudden sell-off in Bitcoin price that pushes Dogecoin price to produce a close four-hour candlestick below $0.076 will reveal a bearish breakout and invalidate the bullish thesis.

This development will cause DOGE to crash another 18% to retest the $0.062 support floor.