The Dogecoin price is retesting the 200-Exponential Moving Average (EMA). At the same time, buyers attempt to push through resistance levels and fill the Chicago Mercantile Exchange (CME) gap. This confluence of technical indicators has prompted a crypto analyst to closely monitor Dogecoin’s next price action, with potential scenarios pointing to bullish and bearish outcomes.
Battle At The 200 EMA: Dogecoin Price Targets $0.32
In a recent Dogecoin analysis, a TradingView crypto analyst identified as ‘SwallowAcademy’ shared differing price projections for the DOGE price, highlighting a bullish $0.32 target and a bearish decline to $0.19. Sharing a video analysis of his prediction, the analyst revealed that the Dogecoin price action on the daily timeframe indicates a struggle between buyers and sellers around the 200 EMA.
Currently, Dogecoin is retesting at the 200 EMA at the $0.26 price level. This retest occurred after the meme coin slightly retouched a broken zone between $0.20 and $0.21. While the 200 EMA acts as a dynamic support level or resistance for DOGE, its current position appears to be holding the price back.
The TradingView expert also highlights the presence of a CME gap yet to be filled. A successful breach of the 200 EMA could trigger a surge in buying pressure, potentially propelling the the meme coin’s price to reach new targets and fill this gap.
On the daily and hourly time frames, the 200 EMA has aligned, which increases the likelihood of a possible breakout from the $0.26 level. If bulls can muster enough momentum to break this key support zone, the analyst projects a push to $0.327, marking a 21.1% increase in the DOGE price.
The TradingView analyst has indicated that traders should monitor the Dogecoin price before it reaches this target, suggesting a take profit zone on the daily time frame at $0.3.
DOGE Bearish Scenario: Drop To Lower Levels?
Adding more complexity to his Dogecoin price analysis, the TradingView expert has highlighted a potential bearish scenario for Dogecoin if it fails to break the 200 EMA. The recent downturn in the DOGE price has triggered massive selling pressure. As a result, the analyst suggests that if sellers regain dominance in the market and the meme coin fails to hold the support zone, then a drop to lower levels may occur.
He predicts that the Dogecoin price, currently trading at $0.25, would drop to $0.19, representing a 25% decrease. A decline to this level would be devastating to investors, as Dogecoin has already experienced multiple price crashes over the past few weeks. At the same time, it could also present a prime entry point for investors to buy low.
With the potential for both an upside and downside movement in the DOGE price, the TradingView analyst advises traders to watch the market carefully and remain cautious when creating their entry and exit strategies.
Featured image from Unsplash, chart from Tradingview.com
