Dogecoin has featured an uneventful investment environment since the June 25 price rebound high as May’s descending trend line pattern has successfully halted each daily rally attempt. As long as the trend line maintains its technical presence, Dogecoin is projected to continue erasing the 95% rebound off the 200-day simple moving average on June 22 and trigger the head-and-shoulders pattern.
The emerging head-and-shoulders offer an alternative bearish twist to the price pattern that has evolved since April and establishes a firm entry price should the Dogecoin price pursue lower levels moving forward. Enforcing the right shoulder’s resistance level is May’s descending trend line, currently at $0.209, formalizing an unprecedented technical obstacle for Dogecoin over the last two weeks.
The measured move of the head-and-shoulders pattern is 82%, fixing the Dogecoin price target at $0.028 and leaving the Dogecoin price back at levels last seen in early February. It would be a remarkable conclusion to one of the most interesting and polarizing stories in the crypto complex during 2021.
A Dogecoin decline to the target price is not a slamdunk. DOGE will need to overcome the layered support specified by the May 19 low of $0.195, the 200-day SMA at a price of $0.175, the Anchored VWAP and neckline at a price of $0.155, and the April 23 low of $0.135. A drop to the April 23 low would equal a 30% loss from the current price and represent a more realistic target if the DOGE token finally chooses a bearish resolution to the stagnating price action.
Should the crypto market suffer a widespread sell-off, DOGE price will be attracted to the support produced by the January 29 high of $0.029.
Dogecoin investors can entertain a better outcome for Dogecoin price if they log a daily close above $0.229. It may release the digital asset to test the declining 50-day SMA at the price of $0.286, offering a 20% gain from $0.229.
DOGE has fallen in line with the realities of the price charts, leaving behind the period of unstoppable gains fueled by FOMO. As a result, the DOGE price is slowly being cornered into another collapse that would erase a large percentage of the 2021 gains.
With DOGE’s back against the wall, it is essential to reiterate that past performance is no guarantee of future results.
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