Cryptocurrency » Dogecoin (DOGE) Analysis

Dogecoin price shows signs of ending its consolidation as it makes headway. The recent swing high created on June 2 is a palpable sign of the evolving uptrend. DOGE needs to breach past a crucial resistance barrier to signal the start of an impulsive wave higher.

  • Dogecoin price consolidates around $0.367, awaiting a lift-off.
  • A decisive close above $0.40 will confirm the start of an upswing.
  • The bullish thesis will face invalidation if DOGE creates a new swing low below $0.311.

Dogecoin price eyes a higher high

Dogecoin price corrected 60% from May 18 to May 19 as it dropped from $0.515 to $0.211. After this nasty fall, DOGE set up the first swing high on May 20 at $0.435 and the second one on June 2 at $0.448, signaling the evolution of a new uptrend.

So far, the swing lows have been intact with Dogecoin price consolidating in a tiny range, indicating that it wants to move higher. A trigger or a confirmation for this rally will arrive after the meme coin produces a swing high above $0.40.

Clearing the level mentioned above will trigger an explosive 12% leg-up to the immediate barrier at $0.45. If the buyers push past this ceiling, Dogecoin price is likely to test the lower boundary of the supply zone extending from $0.481 to $0.515.

All in all, the move from $0.40 to $0.481 would represent a 30% bull rally.

In an extremely optimistic scenario, DOGE might slice through the resistance area, which will open up the path to $0.571.

Dogecoin 4-hour chart (DOGE/USDT)

dogecoin chart cryptocurrency doge june 7 2021

On the other hand, if DOGE price fails to climb above $0.40, it will signal weak buyers. However, the bullish thesis will face invalidation if Dogecoin price creates a new swing low lower than $0.311, which was set up on June 01.

In such a case, there is a chance that the meme coin might witness a 7% sell-off to the immediate support level at $0.293.

By Akash Girimath, FXStreet

Akash has been working in the crypto-space as a content writer, analyst for over two years. He is a Mechanical Engineer interested in emerging tech & financial markets. Attracted to the chaos of trading he has invested in crypto and maintains a small crypto fund for friends and family.

The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move comes with risk, you should do your own research when making a decision.

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Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell currency contracts or CFDs. Although the information contained in this document has been taken from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may result from the fact that someone relies on such information.
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