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Dogecoin Price Forecast: Breakout Above $0.1561 Could Ignite Strong Upswing

By:
Jon Morgan
Published: May 20, 2024, 14:26 GMT+00:00

Key Points:

  • Bulls need to push Dogecoin above the $0.1561 mark to initiate a significant upward movement.
  • The Volume Profile indicates that resistance decreases as prices rise above $0.1561, making higher levels easier to reach.
  • Both the weekly and daily charts show bullish patterns.
Dogecoin. FX Empire

In this article:

Dogecoin Weekly Chart: Bulls vs. Bears Showdown

Dogecoin and the broader memecoin market have been in a bit of a funk since last Friday. After a strong +4.22% gain for Dogecoin on Friday, DOGE spent the rest of the weekend retracing the entirety of that move. Let’s see what the charts tell us today.

Whether you’re rooting for the bulls or the bears on DOGE, you’re probably sweating bullets. Dogecoin is set up to royally mess with one side of this market.

So, which side is it favoring? Hint: it’s the bulls. The bulls need to get above $0.1561 and stay there. Do that, and the path up is way easier than down. Check out the Volume Profile – as prices rise, resistance thins out. So, how high can Dogecoin go? Let’s dive in.

Dogecoin Weekly Chart: The Bigger Picture

Zooming out to May 2021, the Volume Profile backs up the close-up view: $0.1561 is the line to cross. The higher prices go, the easier it is for Dogecoin to move. So, how high are we talking? The 100% Fibonacci Expansion at $0.4311 is the target.

Dogecoin Daily Chart: Bulls Ready to Charge

Remember the inverse head-and-shoulders pattern from last Friday? Still there. Bulls need to break and close above – you guessed it – $0.1561.

The RSI is looking sweet for DOGE bulls if they can break out above the head-and-shoulders pattern. The RSI is in a bull flag and about to cross back above its first historical support level at 50 – prime positioning to help confirm a breakout above the neckline for Dogecoin.

Shiba Inu Breakout Or Fakeout?

Last Wednesday, SHIB exploded higher by nearly 10% to close at its highest level since the beginning of May. In the process of that big spike, it closed above a near-term trendline before pausing and consolidating.

Ever since last Wednesday, that trendline has been tested as support and has so far held. However, if SHIB falls back into that triangle, that could send the bears frothing at the mouth. Why? Because that fakeout higher could turn into one hell of a nasty bull trap.

Choppy Choppy Choppy

It’s a tough spot for both sides. If we look at the RSI from last week, there was plenty of room for SHIB to keep moving higher. However, bulls were unable or unwilling to follow through.

If buyers are successful at holding Shiba above the trendline, then the next target is a prior resistance zone in the $0.00003200 value area. But the weekly chart warns of a more near-term resistance level.

The trendline on the weekly chart indicates bulls might have a pause at the trendline near $0.00002610. But this is SHIB and the memecoin market. Sometimes resistance and support don’t matter – so plan accordingly.

About the Author

Jon brings over 15 years of experience in trading and technical analysis. In addition to FXEmpire, he authors The Litepaper, Stocktwits’ crypto newsletter with a subscriber base of 400,000.

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