Is Dogecoin (DOGE) Price Poised to Reach $0.09?

The Dogecoin (DOGE) price broke out from a long-term descending wedge and then created a short-term double-bottom pattern.

While the increase is expected to continue in the short term, the direction of the long-term trend is still unclear.

Dogecoin Price Creates Bullish Pattern

The technical analysis from the daily time frame shows that the DOGE price broke out from a descending wedge on May 16. The wedge is considered a bullish pattern, meaning that it leads to breakouts most of the time.

However, the price failed to sustain the increase after the breakout. Rather, it returned to its pre-breakout level.

DOGE/USDT Daily Chart. Source: TradingView

Despite this seemingly bearish movement, DOGE created a double bottom pattern combined with long lower wicks (green icons). Similarly to the wedge, the double bottom is considered a bullish pattern.

Additionally, the wicks are considered a sign of buying pressure, since sellers were not able to push the price down. Rather, buyers took over and caused the price to close higher.

DOGE Price Prediction: How Long Will Bounce Continue?

A closer look at the daily time frame gives a bullish DOGE price prediction. The main reasons for this are the wave count and the RSI readings.

The wave count shows a completed five-wave downward movement (white) inside the wedge. Since the movement is complete, a retracement is likely.

If one occurs, the closest resistance will be between $0.087 and $0.091, created by the 0.5-0.618 Fib retracement resistance levels.

The theory of Fibonacci retracement levels suggests that after a substantial price move in one direction, the price will partially retrace or return to a prior price level before continuing in its original direction. This principle can be used to determine the peak of potential future upward movements.

DOGE/USDT Daily Chart. Source: TradingView

Despite this bullish short-term price prediction, a drop below the wave 5 low at $0.069 (red line) will mean that the trend is still bearish. In that case, the DOGE price could fall to $0.050.

For BeInCrypto’s latest crypto market analysis, click here.

Source