Dogecoin Price Targets $0.18 After Bullish Inverse Head and Shoulders Pattern

Key Insights:

• Dogecoin’s formation of an Inverse Head and Shoulders pattern signals potential price surge toward $0.18.

• Whale action, where 297 million DOGE have been bought is driving a feeling of bullishness and anticipation of a rally.

• Consolidation notwithstanding, the lack of $0.15 is crucial in the bullish performance of Dogecoin, showing that a breakout is likely to be followed by a rise in prices.

The Dogecoin has been clinging to the price of close to the $0.14 mark after a short period of consolidation and market analysts are witnessing a bullish trend emerging. Its daily chart is also developing an Inverse Head and Shoulders that indicates a potential price increase of the cryptocurrency. Being a technical trend that is characterized by bullish reversals, this phenomenon may presuppose that Dogecoin may exhibit a considerable upward trend provided that the major resistance points are broken.

The Dogecoin resistance level is at present approximately at the level of $0.152 based on the neckline of the Inverse Head and Shoulders. In case the price manages to overcome this point, analysts assume that the Dogecoin may skyrocket to the $0.186 area. This possible increase is drawing the interest of both the traders and investors since the trend is historically linked with price increases.

Whale Action Touches Off Bullishness

Besides the technical arrangement, latest whale occurrence is also contributing to optimism. Large investors bought Dogecoin (DOGE) in the last 247,000,000. These large acquisitions will usually be an indication that the investors are gearing up to a price increase in the future with an expectation of the market improving. Whale accumulation is usually regarded as a pre-cursor to price spurts, and that has contributed to the general optimistic attitude toward Dogecoin.

Source: TradingView

In spite of this optimistic news, the recent Dogecoin price movement has been a little bit dull. DOGE has passed a failed attempt to break the 0.1500 mark and now is in the consolidating period and the price is now stabilizing to $0.1437. The MACD indicator shows that it is a downward crossover, in the sense that the MACD line is a bit lower than the signal line. Meanwhile, the relative strength index (RSI) is at 51, this is a signal of a balanced market where the selling and the buying force are not dominating.

Breakdown or Breakout Potential.

DOGE has developed a support level of approximately $0.13 which was used as a base in the previous phases of consolidation. Reduction below this mark may be an indication of a breakdown where the price will tend to nearer to $0.12, where the buyers have indicated interest in the past. Nevertheless, once Dogecoin will be able to retake the $0.15 position, it may start moving once again and even hit the height of $0.17 and, perhaps, even higher.