When Will Dogecoin (DOGE) Catch Up to the Rest of the Market?
The Dogecoin (DOGE) price has been trading inside a range of 25-34 satoshis since October 2019. Currently, there are no immediate signs that the price will break out or down from this range.
While numerous altcoins have been posting double and even triple-digit gains, DOGE has yet to move out from its consolidation range. This was noted by cryptocurrency trader @CryptoMichNL, who stated that:
$DOGE #DOGECOIN The longest sideways accumulation going on here. The level at 23-25 sats is a very nice zone for longs. Otherwise 15-17 sats. Targets are in the chart, first one mainly around 70 sats.
DOGE in Altcoin Limbo
Technical indicators show textbook signs of consolidation. The RSI has freely moved above and below 50, and the price has done the same thing relative to the 200-period MA.
However, there is one bearish sign. The price has created five lower-highs until now, a sign that sellers are still in control. In addition, while the exact pattern is difficult to identify because of the presence of multiple wicks, it resembles a descending triangle, which is considered a bearish pattern.
The descending resistance line that connects the lower-highs is more clearly visible in the weekly time-frame. If the price breaks out above this level, the next resistance areas are found at 50 and 75 satoshis.
On the other hand, a decrease below the aforementioned support level of 25-27 satoshis would likely trigger a rapid decrease towards the closest support area at 15 satoshis, as outlined in the tweet.
At the current time, both options seem equally possible, so the prudent play would be to wait for a decisive move before initiating a position.