If bulls manage to surpass $0.060, fresh upside momentum could catapult DOGE towards $0.11
Dogecoin price is trading around $0.055 against the US dollar, down about 2% over the past 24 hours as bulls face slight pressure near a critical support level.
DOGE, however, remains inside a bullish pennant pattern, with the price above the 20-day moving exponential average. This suggests that should buyers retake control short term, a massive rally could unfold.
The technical picture for DOGE/USD shows that such a scenario could see buyers rally 93% to hit highs above $0.11.
Dogecoin price technical outlook
The daily chart shows that DOGE is trading near the tip of a bullish pennant pattern. The meme-coin has traded inside this pattern since dipping from highs of $0.10 on 29 January. The consolidation has tracked the contracting triangle formation, resulting in a potential pennant breakout.
For this to happen, bulls need to stem the downward pressure suggested by the red candles. A new push towards the resistance line of the pattern around $0.060 could see a DOGE/USD rally. This outlook comes from taking the ‘flagpole’ height and cloning it at the expected breakout point.
Adding the previous rally’s height to the anticipated breakout point at $0.060 suggests DOGE will soar towards $0.11.
Although slightly sloped, the RSI remains above the midpoint to suggest bulls have the upper hand. The SuperTrend indicator also offers a bullish outlook in the form of a short-term signal. If these indicators strengthen, DOGE/USD could break higher amid increased buying.
Last week, billionaire investor Mark Cuban had predicted that Dogecoin’s price could gradually soar to $1. According to him, the adoption seen with NBA team Dallas Mavericks since it started accepting DOGE payments has been immense. If this continues, he noted, a spike in sales could send DOGE/USD to the coveted $1 mark.
DOGE price potential downside
Certainly, a breakout above $0.11 could bolster the community and render the above optimistic view achievable long term. The short-term view, however, also features a probable dip below support at $0.053 (20-day EMA), with bears likely to strengthen if prices fall below $0.047.
This bearish perspective could gain momentum given Dogecoin’s price currently tracks a descending trendline on the 4-hour chart. The RSI has also dipped below 50 to suggest increased selling pressure. As mentioned above, declining below $0.050 will invite more sellers and see DOGE price shrink even further.