- Dogecoin needs a little push out of the descending parallel channel to swing to $0.41.
- Support at $0.3, as highlighted by the channel’s middle boundary, is crucial for resuming the uptrend.
- The transaction history model illustrates immense buyer congestion, likely to encumber the liftoff.
Dogecoin has been on a downward roll since the beginning of June. The listing on Coinbase Pro mainly supported the appreciable price action from $0.275 to $0.45. It is imperative to say that investors reacted to the well-known “Coinbase effect,” which usually sees cryptocurrencies rally before or after their listing on the exchange.
Soon enough, the meme coin started to retreat amid a general market downswing that saw BTC dip to $31,000 at the beginning of this week. Dogecoin corrected within an ascending parallel channel, whereby it retested support at $0.30.
Dogecoin aims for massive liftoff after breaking out of key technical pattern
DOGE trades at $0.32 and dancing within the confines of a descending parallel channel, as shown on the chart. The channel’s middle boundary support is ensuring that losses do not extend further. On the upside, bulls aim at breaking the upper limit resistance to kick start gains to $0.35 before lengthening the up leg to $0.41.
DOGE/USD four-hour chart
The TD Sequential indicator may flash a buy signal in the coming sessions. This call will manifest in a red nine candlestick on the four-hour chart. A buy signal insinuates that bulls are gaining traction as sellers lose grip. Most of these signals presented in the past have been validated by the ninth and tenth candles closing above the sixth and seventh.
DOGE/USD four-hour chart
The same four-hour chart shows a leveling Moving Average Convergence Divergence (MACD). However, the indicator has a minor bullish impulse due to the MACD line (blue) holding above the signal line. If the MACD moves into the positive region, Dogecoin will acclimate to the expected upswing to $0.41.
Looking at the other side of the fence
According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP), Dogecoin rolls toward an immense concentration of sellers, especially between $0.33 and $0.34. Here, nearly 71,000 addresses previously bought around $6.9 billion DOGE.
Dogecoin IOMAP chart
On the downside, support levels are relatively weak, as shown by the model. The most substantial support zone extends from $0.31 to $0.32. Here, 88,000 addresses previously bought 2.8 billion DOGE. A break under this area could lead to more losses toward the primary support at $0.25.