Dogecoin Price Today, June 14: DOGE Rises 5% ahead of a Massive Breakout
- Dogecoin closes in on a potential breakout defined by the Bollinger Bands.
- DOGE bulls start the week with extreme aggressiveness based on the RSI.
Dogecoin trades at $0.32 at the time of writing and after defending immediate support at $0.3. The meme coin managed to avoid losses, eyeing lower levels at $0.28 and $0.24, respectively. Consolidation dominated the weekend session, but the new week has seen DOGE add more than 5% to its value.
Dogecoin impending breakout beckons
The four-hour chart brings to light a constricting Bollinger Bands. This indicator reveals the consolidation and volatility levels of an asset. As the tool squeezes, it implies that a breakout will succeed the sideways price action.
Note that the tighter the constriction, the larger the anticipated breakout. However, the BB does not indicate the direction of the asset. Hence, it is essential to watch the area below and above the middle boundary to determine the breakout direction.
DOGE/USD four-hour chart
According to the four-hour chart, Dogecoin will likely breakout to the north. The same uptrend has been reinforced by both the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI). If the RSI continues with the movement above the midline and closes the gap to the overbought area, Dogecoin will gain more traction toward $0.4.
Meanwhile, the MACD has a bullish signal which appears after the momentum oscillator crosses into the positive region. Moreover, the MACD line (blue) has moved above the signal line, adding weight to the bullish narrative. If this technical picture holds and remains intact, Dogecoin will gain traction toward $0.5.
According to IntoTheBlock’s IOMAP model, the least resistance path is upward. This on-chain metric tracks the number of addresses that previously bought Dogecoin and groups them in bands alongside the volume transacted. These bands become precise resistance and support indicators.
The model shows massive support between $0.31 and $0.32. Here, around 117,000 addresses previously bought 5.98 billion DOGE. Note that this support has the potential to stop losses from extending any further, allowing bulls to focus on gaining ground.
Dogecoin IOMAP chart
Dogecoin’s upside is marred with relatively intense resistance, especially in the region between $0.33 and $0.34. Here, nearly 64,500 addresses previously bought 5.6 billion DOGE. If this hurdle is broken, Dogecoin will likely be blasted significantly upward, perhaps validate the impending technical breakout.
Looking at the other side of the picture
It is worth noting that the uptrend to $0.4 and $0.5 may fail to occur if the resistance at $0.34 remains unshaken. On the downside, breaking below the support at $0.3 will see Dogecoin revisit the levels at $0.28 and $0.24, respectively.