DOGE Price Analysis Hints At 30% Drop


Dogecoin charts are showing a head-and-shoulders formation, which indicates that investors aren’t too bullish on the cryptocurrency.

The 8% weekly increase in Dogecoin prices saw after Elon Musk’s offer to acquire Twitter seems to be fading.

After reaching a high of $0.149 in the area on April 3rd, its price quickly began to fall, and by April 17th it had reached $0.142. Even though the coin’s price drop was very minor, it raised the possibility that a well-known reversal pattern (bearish), with an 85% chance of being realized, would be triggered.

The DOGE Price Looks At Drop Under $0.10

The H&S pattern occurs when there are three consecutive peaks in price, with the main peak (the “head”) located between two peaks (the “shoulders”) of about equal height.

The “neckline” serves as a common support level for all three peaks. According to the idea, after producing peak number 3, or the shoulder towards the right, the price often breaks right under the neck and drops by the same as the H&S’s max height, i.e. the gap between the head’s top and neckline.

This coin has, at the very least, been creating this pattern since March 24. After establishing its right shoulder, the cryptocurrency may fall to the neckline before breaking down in a bearish trend, as seen in the next chart.

That makes a move back to its H&S neckline at $0.132, or roughly 7.5% below its April 17 price, a more likely scenario. This is because the level corresponds with the 50-day SMA; blue wave for DOGE.

If price moves decisively below the support convergence, the H&S setup might be triggered, with a potential downside target of less than $1, or approximately 30% below the price on April 17.

Interestingly, the objective seems to be close to the lower trend of the falling channel pattern that has encapsulated Dogecoin’s price swings since December 2021.