DOGE/USD – Forex Academy

Dogecoin (DOGE)

Market Cap: $433.90M

Circulating Supply: 114.75B DOGE

Max Supply: 0 DOGE

Volume (24h) $14.08M

Technical Analysis

Dogecoin (DOGE) continues to move higher on the short term after the failure to reach the near-term support levels. The cryptocurrency increased as the crypto market has managed to recover a little after the last corrective phase. You should know that the perspective remains bearish on the short term because the rate is still trapped below a downtrend line which represents a very strong dynamic resistance.

The rate moves sideways on the short term, so maybe will be better to stay away until we’ll have a valid breakout from this extended range.

DOGE/USD has developed a major triangle on the Daily chart and now the rate has failed to approach and reach the downside line signaling a potential reversal. The rate has turned to the upside on the short term, but it remains to see how long this will be because it has increased slowly. The current rebound could be only temporary and it could still drop towards the 0.00288000 – 0.00248254 support area.

Price dropped along the upper median line (uml) of the descending pitchfork,, but failed to reach the first warning line (WL1). It could still reach the WL1 as it is trading very close to it. Dogecoin (DOGE) has managed to breakout above the 150% line and could fight hard to reach the first warning line (wl1) in the upcoming period.

Conclusion

A really great buying opportunity could appear only after a valid breakout above the downtrend line, above the warning line (wl1) and above the 0.00487198 static resistance. The Stop Loss could be placed below a former low.

Dogecoin (DOGE)

Market Cap. $604.75M

Circulating Supply: 114.24B DOGE

Max Supply: 0 DOGE

Volume (24h) $39.50M

The cryptocurrency is narrowing in the short term and maintains a bullish perspective. Dogecoin DOGE/USD changed was limited in the last days, but I really hope that we’ll have an impressive move soon. Is trading at 0.00529422 level after the failure to resume the yesterday’s minor increase.

Price has developed a minor chart pattern, but it remains to see if this is an accumulation or a distribution movement. The rate is pressuring a strong support area right now, so I really hope that we’ll have a great buying opportunity in the upcoming days.

You can see that the DOGE/USD has managed to jump above the downtrend line and now is retesting it. DOGE/USD has found temporary resistance at the 50% Fibonacci line (ascending dotted line) and now is trying to find strong demand again.

A valid breakout above the downward trend line will signal another upside momentum. The rate could continue the minor sideways movement before will have enough energy to make a larger move.

DOGE/USD could increase and could reach fresh new highs if it stays above the broken downtrend line and above the 0.00491848 static support. The rate could try to retest the lower median line (lml) in the upcoming days. Only a breakdown below the lower median line (lml) and a drop below the mentioned support levels would invalidate a further increase.

Conclusion

DOGE/USD will become strongly bullish only if will have enough directional energy to make a valid breakout above the 50% Fibonacci line (ascending dotted line). A valid breakout will confirm an increase at least till the median line (ML).