Dogecoin price predictions remain indeterminate after the DOGE/USDT pair lost all its earlier gains of the day. The pair is now trailing by 1.05% after the bulls failed to overcome a key resistance level formed by the upper border of the range.
Several cryptos have displayed this ranging pattern as the crypto market awaits the completion of Ethereum’s Merge upgrade. The upgrade is due to occur today but is not likely to significantly impact the crypto market or even Dogecoin price predictions.
Apart from the market’s focus on the Merge upgrade, the emerging bearish patterns on the BTC/USDT pair have captured the market’s attention, with some analysts now boldly calling for a 15K price in Bitcoin.
Glassnode is reporting a drop-off in liquidity across all asset markets as the USD strengthens with expectations that the Fed will continue its aggressive rate hiking pattern on 21 September. Glassnode notes that the periods that BTC has faced price elation has been met with aggressive distribution from the most prominent investors. Dogecoin has been a victim to such rally-sell plays.
A look at the DOGE/USDT from the technical analysis perspective reveals that the pair is trading within the range formed by the 0.06567 ceiling and 0.05992 floor. Within this range, the 4-hour candles have been forming higher lows, culminating in the intraday test of the range’s ceiling, which the bears quickly rejected. This scenario is best suited for range trading techniques, but these will become invalid if the price action breaks the floor or the ceiling. This directional change is what will feed Dogecoin price predictions in the future.
The bounce on the 0.05992 support requires more momentum to aim for the immediate resistance at 0.06567 (2 August/22 August lows). A break of this area gives the bulls access to the 0.07212 price mark (29 July and 25 August highs). If the bulls uncap this barrier, the 0.07828 price level (26 June 2022 high) becomes the new upside target. Only when this barrier is breached will the bulls have clear skies to aim for the 17 August top at 0.08898.
On the flip side, rejection at the 0.06567 resistance and an accompanying breakdown of the 0.05992 support level (26 July and 30 August 2022 lows) brings 0.04952 (14 June and 18 June double bottom) into the mix. The 24 February 2021 low at 0.04157 becomes the new downside target if the bears degrade the support level at 0.04952 (13 June/18 June lows). Further price deterioration opens the door toward 0.04157.
This post was last modified on Sep 06, 2022, 18:47 BST 18:47