Dogecoin value is about to interrupt 70%, suggests a commerce veteran

  • Dogecoin has formed a classic bullish cup-and-handle pattern ready for another upswing.
  • The support at the 50 SMA on the 4-hour chart needs to be protected to keep the uptrend secure.
  • The IOMAP sheds light on the challenging resistance ahead of DOGE, which can delay the uptrend.

Dogecoin holds above key support after correcting from the all-time high at $ 0.088. The ‘Meme Coin’ trades at $ 0.058 as the bulls struggle to regain control. Peter Brandt, a well-known trader, suggested in his latest analysis that the DOGE is poised for a massive 70% rebound to $ 0.143.

Dogecoin technical levels are bullish

DOGE formed a classic cup-and-handle pattern on the 4-hour chart. The technical pattern is viewed as a bullish signal with the right side going through a phase of low trading volume. The cup-and-handle pattern can form over both short and long periods of time.

With the correct timing, this pattern offers excellent entry-level positions. It is confirmed when the handle reaches maturity, which is characterized by low trading volume. A breakout comes into the picture as the volume begins to rise, causing a retest of the previous high.

DOGE / USD 4 hour chart

The same 4 hour chart shows Dogecoin trading above the 100 Simple Moving Average (SMA). With this support intact, bulls have an opportunity to focus on breaking the 50 SMA short-term resistance. Trading above this critical level could push the rally to highs above $ 0.1 and set Dogecoin on its way towards $ 0.143.

Look at the other side of the fence

Developed by IntoTheBlock, a leading on-chain analytics platform, the IOMAP model shows increasing selling pressures, especially in the $ 0.058-0.06 region. Almost 36,000 addresses had bought around 5.6 billion DOGE here. Cutting through this level could be a difficult task.

Dogecoin IOMAP Chart

Dogecoin IOMAP Chart

On the flip side, there is robust support to ensure losses are stopped. For example, the most significant congestion zone for buyers is between $ 0.053 and $ 0.055. Almost 1,700 addresses had previously bought 3.4 billion DOGE here. The model generally shows that consolidation takes precedence before the aforementioned breakout comes into the picture.

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