The price ofDogecoin (DOGE) appears to be gearing up for a 30% high if bulls manage to cut above a key resistance area.
Thus, this is the opinion of analyst and daytrader, Sarah Tran, who suggests that a technical indicator points out that there are more buyers than sellers in the market, adding credibility to the optimistic forecast.
Therefore, according to her, Dogecoin's price has formed a symmetrical triangular pattern on the 12-hour chart, with a measured movement of 30%.
“The Weapons Index (TRIN) is flashing a reading below 1, and at 0.69, suggesting there are more buyers than sellers in the market, indicating a bullish forecast for DOGE,” he said.
However, she points out, for the prevailing chart pattern's target of a 30% rise to be on the radar, Dogecoin's price must cut above the upper limit of the governing technical standard at $0.172.
Dogecoin Price (DOGE)
Thus, Dogecoin's price will face additional headwinds at the 12-hour simple moving average (SMA) of $0.175, coinciding with the 50% retracement level, and then at the 12-hour SMA of 21 to $0.177.
Therefore, other obstacles will appear at the 61.8% Fibonacci retracement level at $0.186, then at the 100 12 hour SMA at $0.191.
Thus, she points out that before DOGE bulls manage to mark the bullish target, another hurdle will arise at the 78.6% Fibonacci retracement level at $0.201.
Thus, she points out that if there is enough buying pressure,Dogecoin's price could rise 30% to reach the bullish target presented by the prevailing chart pattern at $0.224, near the resistance line given by the Moment Reversal Indicator (MRI ) and the twelve-hour SMA 200.
“However, if a spike in sell orders occurs, Dogecoin's price may find immediate support at the lower boundary of the symmetrical triangle at $0.167, coinciding with the support line provided by the MRI,” he said.
Therefore, she believes this level should act as a credible foothold for DOGE, but if there is more selling pressure, the token could slide towards the 38.2% Fibonacci retracement level at $0.165.
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