DOGE price seems positioned for a sustained upward move, returning to $0.25.
The meme coin may end its underperformance period soon.
Price actions are likely to squeeze short-sellers, fueling the anticipated rally.
Dogecoin (DOGE) price movement has been somewhat frustrating for meme coin investors and fans. The original meme coin has seen intense competition from other canine-themed tokens, like Shiba Inu. However, bulls seem ready to change the narrative, alleviating the current downtrend and stagnation, which stayed for about 281 days.
Dogecoin Price Highlights a Potential Upswing Soon
Dogecoin price managed to stave another capitulation action on 4 February. The 4 February swing low emerged before a 27% upsurge for DOGE until 7 February. Meanwhile, wild swings and whipsaws are part of Dogecoin movements. The meme token had witnessed four whipsaws that led to 25% to over 50% swings highs and downs since 2022 January.
The various whipsaw catalyzed the bullish reversal formation developing at the moment: head-shoulder setup. Triggering this formation might generate the necessary momentum to push DOGE into Ideal Bullish Ichimoku on the daily chart, resulting in a breakout towards the crucial price zone of $0.25.
DOGE’s $0.005/three-box reversal Point & Figure chart supports the reversal formations emerging in the candle chart. A theoretical opportunity exists for DOGE price for now. The hypothetical pattern is a buy-stop order around the 3-box reversal of the O-column ($0.165 at this publication). The stop-loss is a 4-box stop, while the profit target, according to the Vertical Profit Target in Point & Figure analysis, is near $0.26.
The 4-box stop and buy-stop entry will follow the Doge price if the canine-themed token drops lower and forms more than one Os in the existing O-column. Nevertheless, the profit target remains unchanged. An O around $0.11 by the present O-column will invalidate the theoretical long-entry. In such a case, DOGE might dip into a capitulation territory to test value areas at $0.08 or $0.09.
While publishing this news, Dogecoin traded at $0.15, ranking 11 by market valuation. The altcoin appears ready to end the underperformance sessions, targeting a return to $0.25. It would be interesting to see upcoming price reactions. Stay around.