Dogecoin Price Analysis: DOGE stabilizes in preparation for rally to $1 – FXStreet

  • Dogecoin price may close with a second inside day as it tries to maintain April high.
  • Daily Relative Strength Index (RSI) shows a bearish momentum divergence.
  • IntoTheBlock IOMAP metric shows considerable support just above the April high.

Dogecoin price corrected over 40% from the May 8 high, but outstanding support at the April high keeps bullish aspirations focused on $1.00.

Dogecoin price success lifting the fortunes of many investors

Dogecoin price rests at a pivotal point on the charts, trying to stay above the April high of $0.453. It is also important to note that the 50% retracement of the rally from the April low sits just below the current support at $0.443. 

On the upside, the May highs have coincided with the topside trend line drawn from the January high through the April high, granting more importance to the trend line.

Suppose Dogecoin price does close with consecutive inside days. In that case, it will augment the probability that the correction process over the last couple of days is largely exhausted and propose that the altcoin will successfully rally moving forward.

Bullish targets begin with intense resistance framed by the 138.2% extension of the April decline at $0.756 and the topside trend line at $0.775. A resumption of heavy accumulation will be needed to best the range.

A successful breakthrough for Dogecoin price will present an open path to $1.00 and the 161.8% extension of the April decline at $1.014, yielding a gain of 100% based on price at the time of writing.

Based on the tightness of the latest bar on the 12-hour chart, the resolution of the current tight range could occur in the next 24 hours.

DOGE 12-hour chart

DOGE 12-hour chart

Everything changes if Dogecoin price closes below the April high on a daily basis. Immediate support emerges at the 50 twelve-hour simple moving average at $0.397, followed closely by the 61.8% retracement of the April-May rally at $0.371. After that level, Dogecoin price is in a price vacuum, with support waiting at the 78.6% retracement level at $0.269.  

The latest IntoTheBlock In/Out of the Money Around Price (IOMAP) data shows a cluster of support between $0.487 and $0.501, representing 58.22k addresses owning 10.71 billion DOGE. The cluster of support (In the Money) rests very close to the current price and further states the importance of the April high in determining the fate of Dogecoin price, particularly considering there is almost no support down to $0.426 based on the IOMAP data.

DOGE IOMAP data

DOGE IOMAP data

To be sure, Dogecoin price is at a critical point, and the future of several unrealized small fortunes rests on the resolution of the tightening price action above the April high at $0.453.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.