Dogecoin price continues to trade at the upper limits of a key zone, as it has done since the beginning of December. Despite the bearish nature of Dogecoin’s price action, the bears have been unable or unwilling to push DOGE down.
Dogecoin price needs to reach $0.20 to continue higher towards $0.35
There are two main scenarios where Dogecoin price could repeat the price action it experienced in early 2021. The first is a hypothetical long entry at $0.20, a stop loss at $0.18, and a profit target of $0.35. This trading option will complete two purposes. First, a pair will confirm the break above the top. Second and most importantly, it will put Dogecoin back in the bull market once the current bear market crosses the trendline.
If the price of Dogecoin returns to $0.155 before entry, the hypothetical long setup will be invalid. However, if there is a drop to $0.155, a sudden move to the $0.09 value area could welcome us.
But at this point, Dogecoin could also move lower, developing a nasty-looking bear trap. If Dogecoin drops to $0.15, a “Bull Shakeout” setup will occur. The Bullish Shakeout is a rare and strong reversal pattern that ends downtrends and corrective movements. But for this, Dogecoin should not close below the $0.15 value area.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.