In a recent analysis of Dogecoin (DOGE), crypto expert Kevin has identified a significant technical pattern on the 1-day time frame. Kevin notes that Dogecoin is developing an inverse head and shoulders pattern, a bullish reversal indicator.
This pattern shows three clear troughs, with the middle trough (the head) being the lowest, bordered by two higher troughs (the shoulders). According to Kevin’s chart, Dogecoin has already formed the left shoulder and the head and is now working on completing the right shoulder.
The significance of this pattern lies in its potential to signal a shift from a downtrend to an uptrend. The neckline serves as a crucial resistance level. A price break above this neckline would indicate a strong bullish move. Kevin suggests that if Dogecoin completes the right shoulder and surpasses the neckline, the price could target between $0.15 and $0.17.
Dogecoin Faces Critical Resistance
Currently, Dogecoin is trading around $0.1221, down 3.14%. The analyst highlights key support and resistance levels that Dogecoin must navigate. To complete the right shoulder, Dogecoin needs to maintain support around $0.1050. Breaking above the resistance at $0.13 is essential to confirm the pattern.
In addition, the daily technical indicators are exhibiting cautious upward momentum. DOGE’s current price is just below its 50-day Exponential Moving Average (EMA) at $0.12707. A break above this level in today’s trading session could signal a bullish trend. The 100-day EMA, located at $0.13394, serves as immediate resistance, and overcoming this level could pave the way for further gains.
The Relative Strength Index (RSI) is at 52.76, slightly above the neutral 50 mark, indicating that the market is gaining momentum but is not yet overbought. This suggests room for upward movement before reaching overbought conditions.
The Moving Average Convergence Divergence (MACD) indicator reveals a potential bullish crossover. The MACD line crosses above the signal line, suggesting a shift from bearish to bullish momentum. The histogram bars are also positive, supporting the potential for upward price movement.
The Chaikin Money Flow (CMF) is currently at 0.16, indicating strong buying pressure, with more money flowing into DOGE than out. This sustained positive CMF value suggests an ongoing accumulation phase, which could lead to further price increases if the trend continues.
Prominent crypto analyst Coinlore forecasts that DOGE could hit $0.1405 in the next few days, with the Fear & Greed Index showing a 61 (Greed). Furthermore, the coin checkup platform predicts that DOGE’s price could reach $0.2143 in three months, a 75.51% increase from the current level.
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