Dogecoin Price Prediction: DOGE prepares to rebound – FXStreet

Jonathan Morgan Jonathan Morgan
Independent Analyst

Dogecoin price action has been an absolute joy for short-sellers – but that joy may turn bitter very soon. Dogecoin broke out of the rising wedge pattern on January 13 and is just now retesting that trendline breakout.
Dogecoin price experienced a strong bounce and rally off of the weekly lows and the upper trendline of the falling wedge pattern. At the same time, DOGE could be developing the beginning of the right shoulder of an inverse head-and-shoulders pattern, signaling a bullish reversal in the future.
Another reason for a bullish outlook in the immediate future is the presence of a Tower Pattern on the Point and Figure chart. However, tower patterns are rare and only form when two columns develop an equal number of boxes in each column; ten or more is the requirement. The entry on a tower pattern is the three-box reversal.
A hypothetical long entry trade setup is now open for Dogecoin price. The long idea is a buy stop order at $0.17, a stop loss at $0.15, and a profit target at $0.315. The current O-column can move two more boxes lower before the Tower Pattern is invalidated. As DOGE moves lower, the entry and stop follow in tandem, but the profit target at $0.315 remains the same.
The trade idea represents a 7.25:1 reward/risk setup for Dogecoin price. However, targets with such a wide range between the entry and profit target very rarely hit; there are normal pullbacks and whipsaws involved on the way. For that reason, a three-box trailing stop would help protect any implied profit generated post entry.
 
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Bitcoin price is up by 1.6% over the last 24 hours against a backdrop of 7.0% in cumulative losses across seven days. The pioneer cryptocurrency is trying to arrest last week's downtrend, which saw its leg tag $19,543 on the downside. Possibly, a daily close above $20,000 will push BTC higher and authenticate a falling wedge pattern breakout with eyes set on $23,000.
XRP recovery remains elusive despite firmly holding onto support at $0.32. A break above $0.34 appears to be a tall order for the bulls, hence the mundane price action at $0.33. The next few days will be important to the cross-border money remittance token.
D.C. Attorney General Karl Racine announced legal action against MicroStrategy and Michael Saylor for alleged tax evasion. Bitcoin’s largest public whale has run into legal trouble for tax fraud allegations in Washington DC. 
Chainlink shows bearish signals underneath the hood that investors should be aware of. Since August 15, the token has fallen 36%. During the final trading week of August, the bulls have managed to recoup 6% of those losses.
Bitcoin price shows a tight consolidation on a lower time frame – an ascending parallel channel – that repeats the motif of three larger channels that have developed on higher time frames since the start of 2022. 
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
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