- Dogecoin retreated on Dogeday, losing over 21% in 24 hours.
- Despite the joke on Dogecoin holders on Tuesday, DOGE prepares for another massive upswing.
- Short-term analysis based on the MACD suggests bears are still firmly in control.
Dogecoin users on social media are currently dubbed ‘DOGEArmy’ marked April 20 as they pump the price to $1 or more. The Tuesday Dogeday was mainly hyped on social media channels. However, the meme coin rallied more than 60x in 2021 retreated, leaving investors liquidated.
Dogeday End in the Red
Many crypto traders believed that Dogeday would culminate in massive gains based on the success the meme coin has experienced in the past couple of weeks. Conservative traders hoped for gains of up to $0.5 to cash out for profit. Besides, some traders had outrageous hopes of the price hitting highs above $1. According to Edward Moya, the senior market analyst at Oanda, a brokerage firm:
“Some (traders) were eyeing the $0.50 level as an area to take some profit, with others having outlandish hopes of a skyrocketing move to the $1 mark. The current retail fervor probably won’t completely give up on Dogecoin, but a sell-the-event reaction could be in the cards.”
Dogecoin Bulls Refuse to Give Up on the Mission to $1
In the wake of Dogeday losses that extended to $0.269, the technical picture reveals that a breakout is around the corner. The bullish outlook has come into the scope after forming an ascending triangle.
This is a bullish continuation pattern mainly molded amid an uptrend. As consolidation comes to an end, a breakout is anticipated. Increased trading volume confirms the breakout with a target measured from the highest to lowest triangle points.
For instance, Dogecoin is likely to hit highs around $1.5 if the triangle breakout materializes. Its breakout has a 270% target. In the meantime, Dogecoin trades at $0.34 as bulls focus on lifting above the x-axis resistance around $0.416.
DOGE/USD Four-Hour Chart
Looking at the Other Side of the Picture
The same four-hour chart shines a light on the bearish Moving Average Convergence Divergence (MACD) indicator. This indicator mainly follows the trend of an asset and measures the momentum. According to the MACD, the least resistance path is downward, especially with the MACD line (blue) crossing below the signal line. On the other hand, failing to break above the triangle’s x-axis resistance could increase overhead pressure.