- The Dogecoin price is surrounded by various levels of support and resistance, which limits a definite outlook for the meme token.
- A DOGE release from the symmetrical triangle can cause a price reaction of 50% up or down.
- A crucial daily close above the upper trendline of the descending channel confirms a bullish outlook.
Dogecoin price has been oscillating along the simple 50-day moving average (SMA) since May 20, making a bullish outlook for the digital asset difficult. During the broad range, DOGE constructed a symmetrical triangle on the 4-hour chart. The resolution of the pattern will determine the next phase for the Dogecoin price.
The price development of Dogecoin in 2021 is an expression of a crazy monetary policy
Dogecoin price declined about 75% from May 8 high of $ 0.760 to May 19 low of $ 0.195, on the higher side of the range for declines in the cryptocurrency complex. However, the digital token rallied 70% from the May 19 low, closing DOGE back above the 50-day SMA, a level that had been involved in price movement over the past eight days.
The sharp decline in the DOGE and the subsequent consolidation resolved the overbought condition of the weekly Relative Strength Index (RSI) and pushed the daily RSI to its lowest level since October 2020. In addition, the daily volume on downturns has been at the 50-day SMA. not exceeded May 10th. In fact, the volume on downturns without the May 19 crash was around 25% of the 50-day average, reflecting no rush for investor exits or the excitement of bidding the Dogecoin price higher.
Dogecoin price has been in a tight range since May 24th, supported by the May 12th low at $ 0.338 and capped by a combination of the 50 four-hour moving average, the upper trendline of the descending channel, and the upper one Trend line of the small symmetrical triangle. The combination converges at $ 0.349.
On the other hand, the measured movement target for Dogecoin price is $ 0.535 and on the other hand it is $ 0.139. Resolving the pattern upwards requires a strong surge in volume, which may not be possible until DOGE rolls back with a decline to the lower trendline of the triangle at $ 0.287.
After resetting, the Dogecoin price can be prepared to hit the measured movement target. First, DOGE must overcome the sizable resistance at $ 0.349, the 200 four hour SMA at $ 0.424, and then the 50% retracement of the May correction at $ 0.473.
DOGE / USD 4 hour chart
An equally possible outcome for DOGE is that the rollback to the lower trendline of the triangle does not hold, exposing Dogecoin price to a decline to the lower trendline of the descending channel at $ 0.187 and possibly the downward measured movement target of $ 0.139 .
Maybe if Stanley Druckermiller is right and the DOGE story is a “manifestation of the craziest monetary policy in history”. Or maybe it’s the result of a social media story orchestrated by Elon Musk and Mark Cuban. Whatever the reason or reasons, the current Dogecoin price chart is a conundrum shrouded in a mystery.