Dogecoin (DOGE) to Consolidate before another Rally
- DOGE consolidates following a top gesture showed by a technical indicator.
- The RSI also hints that Dogecoin might be overbought.
- If DOGE closes over the 27.2% Fib retracement zone, it might see extended upward rallies.
Dogecoin might witness further consolidations before it continues with its rally. According to a tech indicator, DOGE appears to print a local top. With that, the dog-themed token may retest crucial support areas before accumulating enough strength for the next rally.
DOGE Slightly Overbought
Dogecoin price suggests a bullish attitude as it seems to break out of the symmetrical triangle formation to the top.
According to the 12-Hr chart, the meme coin slide over the top border of the dominant price chart formation on 6 August. With that, DOGE has its value surging 31%. According to the current symmetrical triangle form, Dogecoin may rally 45%. That way, it will reach the top target at $0.314, around the 200 twelve-hour SMA.
Meanwhile, the MRI (Momentum Reversal Indicator) hints that the canine-themed coin might experience trend reversals to retest the critical support area in the short term.
Also, the RSI adds credence to DOGE’s correction narrative. The indicator shows that Dogecoin was somewhat overbought.
At the moment, DOGE might secure support near the 27.2% Fib retracement at $0.249. the meme coin can witness continuous rallies if it manages to close this defense line. The following defense line for DOGE lies at $0.236 and the 38.2% Fib retracement.
Increased selling pressure might have Dogecoin falling towards the demand barrier at the 50% Fib retracement at $0.221 before DOGE tests the 100 twelve-Hr Simple Moving Average. Also, the meme asset will test the symmetrical triangle’s upper trend-line.
Also, Dogecoin can secure more support near the 61.8% Fib retracement, coinciding with the 50 twelve-Hr SMA around $0.206. However, that will require buyers’ action to lift the coin against the sellers’ distribution in the market.
With magnified buying pressure for the asset to close over the 27.2% Fib retracement at $0.249, Dogecoin might see a 25% rally towards $0.314. That would affect the target by the symmetrical triangle shape.
If you want to interact with Dogecoin, beware of the anticipated consolidation before the meme coin resumes another rally.
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