Although the price of DOGE rose on the 28th of XNUMX, it failed to break through this barrier, leading to consolidation.
However, the current structure indicates that the cryptocurrency is about to break out.
The price of Dogecoin has established three bottoms since XNUMX, forming a reverse head and shoulders pattern. This technical pattern consists of two swing bottoms of roughly equal depth forming the shoulders, with the central bottom deeper than the others, forming the head.
Connecting the tops of these swing levels will form a neckline, serving as a resistance barrier and helping to confirm the breakout.
This setup predicts a XNUMX% breakout to XNUMX.XNUMX, determined by adding the distance between the right shoulder top and head bottom.
Although the price of Dogecoin came close to breaking the neckline on August XNUMX, the attempt was unsuccessful. However, a daily closing price above XNUMX will theoretically confirm the breakout and start a XNUMX% rise.
Investors should wait for a higher top above XNUMX to open up a clear path for DOGE to the XNUMX to XNUMX area.
Clearing this level will cause the price of Dogecoin to rise and reach a peak of around XNUMX.
Don’t miss:
Over XNUMX billion US dollars liquidated in the market crash
Overall, from the current position, this increase would mean a XNUMX% upside.
While the price of Dogecoin looks good, daily closing prices below the demand area of XNUMX to XNUMX will invalidate the bullish scenario. This move could lead DOGE further down to XNUMX.
Dogecoin DOGE Poised for 50 Increase 