- Dogecoin price hit a cap, forming a double top at $0.35.
- Price correction with buyers taking profit ongoing.
- Traders are also adding to their longs on a short-term green ascending trend line test.
Dogecoin price (DOGE) had a solid run higher after buyers stepped in and lifted price action to form a green ascending trend line and mark the 200-day Simple Moving Average (SMA) as support.
Buyers were more than glad to step in with these factors as motivation to run prices higher. This action took place between August 5 and August 7.
Dogecoin hit the ceiling, but momentum is building for a break higher
The rally showed signs of healthiness with some pauses along the way but no significant corrections. Buyers who wanted to add to the rally had to wait until August 18 for an opportunity to step in. The green ascending trend line got tested to the tick, and the candle formation shows that buyers overtook any short positions from sellers trying to run prices further down.
The price action today is showing a quick consolidation, with both highs and lows getting squeezed in. Expect that buyers who stepped in at $0.28 will be in no mood to book profit already and close their longs. A new test of $0.35 will be the primary objective, so expect buyers not to step away quickly from this trade.
DogeCoin is ready for a breakout either way. Seeing the positioning and the argument that buyers have had their chance of re-entering or adding to their long positions, expect a breakout to the upside with a retest of that $0.35 marker. This would make for a triple top ceiling. Sellers will probably be pushed out of their positions, stops will be run, and this might get DOGE to $0.38.
If the green ascending trend line does not hold, expect the double move from both the 55-day and 200-day SMA to provide some support.