Dogecoin (DOGE) Forms Bullish Pattern,18% Rally Incoming?

The sentiment across the cryptocurrency landscape appears confusing due to huge price fluctuations. Amid this, Dogecoin (DOGE) the popular and the world’s largest crypto meme coin formed a bullish price action pattern and is poised for massive upside momentum.

Dogecoin (DOGE) Technical Analysis and Upcoming Levels 

According to expert technical analysis, DOGE has formed a bullish inverted head and shoulder price action pattern in a four-hour time frame with a sharing a neckline at the $0.178 level.

Based on the recent price momentum and historical patterns, if the meme coin breaches the neckline and closes a four-hour candle above the $0.18 level, there is a strong possibility it could soar by 18% to reach the $0.212 level in the coming days. 

This $0.21 level is the horizontal resistance level and is further supported by the 200 Exponential Moving Average (EMA) on a daily time frame, which indicates that the asset is still in a downtrend and overall market conditions.

Traders Bearish Outlook

Despite bullish price action and patterns appearing on the chart, DOGE traders appear to have a bearish outlook, as reported by the on-chain analytics firm Coinglass.

Data revealed that traders are currently over-leveraged at $0.168 on the lower level and $0.1755 on the upper level.

Besides this data further revealed that traders have built nearly $12.70 million worth of long positions on the $0.168 level, while $19 million worth of short positions on the $0.1755 level, which potentially clears that intraday traders hold a bearish view on the DOGE meme coin.

Current Price Momentum 

DOGE is currently trading near $0.173 and has experienced an upside momentum of 1.50% in the past 24 hours. However, during the same period, its trading volume jumped by 16%, indicating lower participation from traders and investors compared to the previous day.