Dogecoin’s Rally: A Technical Analysis and Price Prediction

Dogecoin's recent price surge, adding roughly 80% from June lows, has left the cryptocurrency in a precarious position, according to technical analysis by Cantonese Cat. While the move is structurally bullish, the analyst warns of potential near-term risks. Several indicators point to a possible pullback. The logarithmic Fibonacci retracement shows Dogecoin closing marginally above the 0.618 level at $0.262, a key resistance zone. This level has capped every breakout attempt since January. Recapturing this level often signals a transition from recovery to trend expansion, but a retest is considered necessary for confirmation. The Bollinger Bands show Dogecoin's weekly close outside the upper band for the first time in eleven months, a rare occurrence often followed by a price correction. Historically, Dogecoin struggles to maintain altitude in such situations. The Ichimoku cloud shows bullish momentum but resistance near $0.28-$0.29. Until a decisive close pierces this cloud, it's viewed as a supply zone. A confluence of support levels around $0.23-$0.25 is identified, potentially providing the next higher low during a pullback. This zone corresponds to the neckline of a double-bottom pattern, suggesting a potential retracement before further gains. Despite these near-term concerns, the longer-term outlook remains bullish. The double-bottom pattern around $0.15, resolved in July, signals a shift in control from sellers to buyers. The analyst anticipates a pullback to the $0.24-$0.25 range, followed by a renewed advance toward the mid-$0.30s. At press time, DOGE traded at $0.277.

(Source: https://www.newsbtc.com/news/dogecoin/dogecoin-rally-on-thin-ice-sudden-shakeout/)