Dogecoin price analysis 12 November: Are fireworks unlikely?

Dogecoin could remain range-bound in the short term

Graphic with Dogecoin dog on rocket to the moon                                 
Dogecoin-funded CubeSat will travel 250,000 miles from Earth to settle into lunar orbit. Will this affect the price of DOGE? – Photo: Shutterstock
                                

A Dogecoin-funded payload dubbed DOGE-1, built in a partnership between smart  exchange ecosystem Unizen, decentralised finance incubator ZenX and Geometric Energy Corporation (GEC), is set to launch in the first quarter of 2022. 

The CubeSat will travel to “stable lunar orbit” and capture lunar-spatial intelligence, which will be analysed by GEC. 

The companies said: “NASA’s CAPSTONE was set to be the first CubeSat to reach the moon, but it has been delayed a number of times and has a current launch date of late March 2022. This means DOGE-1 could be the first CubeSat in history to reach the moon, marking a significant achievement for global spaceflight,” Cointelegraph reported.

During the company’s Q3 earnings call, AMC Entertainment Holdings CEO Adam Aron said they have “started accepting cryptocurrency for AMC gift cards” and work is in progress to accept bitcoin, ethereum, litecoin, dogecoin and many other cryptocurrencies for online payments on the website and mobile app. 

Although Dogecoin has been in the news, the trading frenzy the meme coin has seen lately has now reduced. A regulatory filing by discount brokerage Robinhood showed that transaction-based revenue from Dogecoin comprised 8% of the total net revenue in the quarter ending September 30, 2021. This is a sharp drop from the previous quarter ending June 30, 2021, where Dogecoin accounted for 32% of the total net revenue of the company.

Could Dogecoin go up after the recent corrective phase? Read the DOGE price analysis to find out what the charts suggest.

Dogecoin (DOGE) price technical analysis: weekly chart

Dogecoin (DOGE) price weekly chart
Dogecoin (DOGE) price technical analysis: weekly chart – Credit: Currency.com

DOGE’s price has formed an ascending triangle pattern, which will complete on a break and close above $0.35. If that happens, the DOGE/USD pair could start a new upward move to $0.4389, where the bears are expected to mount a stiff resistance.

If buyers overcome this hurdle, the pair could start its journey toward the pattern target at $0.5365.

The 20-week exponential moving average (EMA) is flat and the relative strength index (RSI) is close to the midpoint, indicating a balance between supply and demand.

This equilibrium could tilt in favour of bears if they pull and sustain the price below the support line of the triangle. That could open the doors for a possible decline to $0.15988. 

This is an important support for the bulls to defend, because if it cracks, the selling could intensify.  

Dogecoin technical analysis: daily chart

Dogecoin (DOGE) daily price chart
Dogecoin (DOGE) price technical analysis: daily chart – Credit: Currency.com

DOGE’s price has been trading in a large range between $0.19 and $0.35 for the past few days. Both moving averages are flattish and the RSI is just below the midpoint, suggesting that the consolidation may continue for a few more days.

The price has slipped below the 20-day EMA and the bears will now attempt to break the support at the 50-day simple moving average (SMA). If that happens, the pair could extend its decline to the support of the range at $0.19.

This level is likely to act as a strong support, and a bounce off it may extend the range-bound action for a few more days. On the other hand, a break below $0.19 could start a new downtrend.

If the price rebounds off the current level and rises above the 20-day EMA, the pair could rally to $0.30. A break and close above this resistance could clear the path for a possible retest of $0.35.

Dogecoin: Buy or sell at current levels?

Dogecoin’s price analysis shows a range-bound action in the near term. The support is at $0.19 and resistance is at $0.35. A break and close above or below the range could start the next trending move. The price action inside a range could be random, hence one of the ways to trade such an asset is to buy on a rebound off the support of the range and close the position near the resistance. 

Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.

Dogecoin to US Dollar
Daily change
0.19919
Low: 0.19838
High: 0.20487
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