- Dogecoin price is enclosed by various support and resistance levels, restricting a definitive outlook for the meme token.
- A DOGE release from the symmetrical triangle may yield a price reaction of 50%, up or down.
- A decisive daily close above the descending channel’s upper trend line confirms a bullish outlook.
Dogecoin price has been oscillating along the 50-day simple moving average (SMA) since May 20, complicating a bullish outlook for the digital asset. During the wide-ranging price, action DOGE has constructed a symmetrical triangle on the four-hour chart. The resolution of the pattern will dictate the next phase for Dogecoin price.
Dogecoin price performance in 2021 is a manifestation of crazy monetary policy
Dogecoin price declined about 75% from the May 8 high at $0.760 to the May 19 low at $0.195, putting it on the higher side of the range for declines in the cryptocurrency complex. However, the digital token did achieve a 70% rally off the May 19 low, closing DOGE back above the 50-day SMA, a level that has been involved in the price action of the last eight days.
Since May 24, Dogecoin price has been resting in a tight range supported by the May 12 low at $0.338 and restricted by a combination of the 50 four-hour moving average, the descending channel’s upper trend line and the minor symmetrical triangle’s upper trend line. The combination converges around $0.349.
On the upside, the measured move target for Dogecoin price is $0.535, and on the downside, it is $0.139. A resolution of the pattern to the upside will require a heavy volume thrust that may not be possible until DOGE resets with a decline down to the triangle’s lower trend line at $0.287.
Following the reset, Dogecoin price may be primed to reach the measured move target. First, DOGE will need to overcome the sizeable resistance at $0.349, the 200 four-hour SMA at $0.424 and then the 50% retracement of the May correction at $0.473.
DOGE/USD 4-hour chart
An equally possible outcome for DOGE is that the reset down to the triangle’s lower trend line will not hold, exposing Dogecoin price to a decline to the descending channel’s lower trend line at $0.187 and possibly to the downside measured move target of $0.139.
MaybeIf Stanley Druckenmiller is correct, and the DOGE story is a “manifestation of the craziest monetary policy in history.” Or maybe, it results from a social media story orchestrated by Elon Musk and Mark Cuban. Whatever the reason or reasons, the current Dogecoin price chart is an enigma wrapped in a riddle.