Dogecoin Price Prediction: DOGE Readies for a 31% Upswing

Dogecoin (DOGE) was trading with a bearish bias around $0.0752 as sellers focused on undoing gains incurred over the last three days. Technical analysis revealed that the recent sell-off might have offered traders a chance to buy the leading meme coin at a discount as it appeared primed for an upswing.

Dogecoin Bulls Eye aReturn to $0.1

DOGE price action had formed a bullish cup-and-handle chart pattern on the daily chart, setting itself up for a bull run. At press time, Dogecoin was trading in the red above the $0.075 support level.

The first hurdle in DOGE's way was the 200-day SMA which sat at $0.0761. Additional barriers would emerge from the handle's high at $0.0782 and the technical pattern's neckline at $0.0801. Breaking this barrier would confirm a bullish breakout from the cup and handle chart pattern setting the meme crypto up for a 31.26% upswing to $0.1. Market participants could expect the price to consolidate within this supply zone for a few days.

DOGE/USD Daily Chart

Apart from the significantly bullish chart formation, the Relative Strength Index (RSI) also supported Dogecoins upside This trend-following indicator was moving upwards, suggesting that the bulls had begun taking control of DOGE. Note that Dogecoin's upward movement would display increased strength once the RSI closes the gap to 70, to enter the overbought region.

Moreover, the Moving Average Convergence Divergence (MACD) indicator was moving northward. Note that this oscillating indicator was about to send a call to buy DOGE. This may happen over the next few trading sessions once the MACD line (blue) crosses above the signal line (orange), indicating an increase in investor confidence.

The most probable invalidation of the bullish scenario is if the price produces a daily candlestick close below the handle's low at $0.0717, where the 50 SMA sits, to revisit the swing low at the 100-day and 50-day SMA around the $0.70 zone.

If the price breaks below this area, then the whole optimistic thesis would be void, and the DOGE price would likely fall to seek solace from the cup's bottom at $0.060, resulting in a 20% decrease from the current price.