- Dogecoin price consolidates after a technical indicator provided a top local signal.
- The Relative Strength Index (RSI) also suggests that DOGE could be easily overbought.
- However, a closing price above the 27.2% fibonacci retracement level could indicate that the token could continue its rally.
Dogecoin price could see further consolidation before continuing its rally. A technical indicator suggests that DOGE has formed a local top, which is why the token could test critical support levels again before its next big spike.
Dogecoin price slightly overbought
Dogecoin price has apparently broken out of a symmetrical triangle pattern, suggesting a positive outlook.
On the 12-hour chart, the Dogecoin price broke the upper bound of the prevailing chart pattern on August 6, resulting in a 31% gain. The current symmetrical triangle pattern suggests that DOGE could rise 45% and hit the $ 0.314 area near the 200 Simple Moving Average (SMA) on the 12 hour chart.
However, the Momentum Reversal Indicator (MRI) showed an MRI top signal, suggesting that Dogecoin price could see a trend reversal and retest key support levels in the near future.
The Relative Strength Index (RSI) underpins the correction thesis and suggests that the Dogecoin price was slightly overbought.
Dogecoin price could find immediate support at the 27.2% fibonacci retracement level at $ 0.249. Should DOGE be able to close above this line, the token should have a better chance of continuing its rally.
The next support line for Dogecoin price is at the 38.2% fibonacci retracement level at $ 0.236.
DOGE / USDT 12-hour chart
With further selling pressure, DOGE could encounter the beginning of the demand barrier at the 50% fibonacci retracement level at $ 0.221 before testing the 100 SMA on a 12-hour basis and the upper trendline of the symmetrical triangle.
Dogecoin price could find further support at the 61.8% fibonacci retracement level, which coincides with the 50 SMA on a 12-hour basis at $ 0.206 should buyers continue to struggle with prices against the overwhelming distribution of the To raise seller.
Should the buying pressure prevail and the DOGE price close above the 27.2% fibonacci retracement level at $ 0.249, the Dogecoin price could target a rally of 25% to $ 0.314 and thus achieve the target set by the symmetrical triangle pattern.