Prominent analyst Rekt Capital recently conducted a technical analysis on Dogecoin (DOGE), revealing crucial insights into the potential trajectory of the popular meme coin. The analysis underscores DOGE’s inability to sustain its monthly retest of the crucial $0.20 level, leading to a retreat into a confluent support area.
DOGE has fallen into the black-red range, so the chances of a recovery above Range High appear slim, despite the fact that there is time for such a move to occur. Rekt Capital predicts that DOGE will likely confine itself to consolidating within this range for the time being, with the Range Low area offering the most attractive bargain opportunity for investors.
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Dogecoin Potential Head and Shoulders Formation
While DOGE has managed to maintain its position above the old Bull Flag bottom, Rekt Capital draws attention to a potential Head and Shoulders (H&S) formation that could develop.
If DOGE were to rebound from the old Bull Flag bottom to the old Bull Flag top but then reject, forming a Right Shoulder, a subsequent loss of the old Bull Flag bottom (which would act as the Neckline) could validate this H&S formation.
In such a scenario, DOGE’s price could drop into the Range Low, but this time with candle bodies rather than just wicks.
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Rekt Capital’s technical analysis provides valuable insights for investors and traders considering a position in Dogecoin. The strong buy-side interest at the Range Low suggests that this area could provide a favorable entry point for those looking to accumulate DOGE.
However, the potential development of a Head and Shoulders pattern warrants caution, as a confirmed H&S formation could lead to further downside pressure. Nevertheless, if the market conditions turn bullish, it could push DOGE to a new ATH in May. But if the market shows bearish performance, the event is highly unlikely.