Dogecoin price has been oscillating along with the 50-day simple moving average since May 20, complicating a bullish outlook for Dogecoin. During the wide-ranging price, action DOGE has constructed a symmetrical triangle pattern on the four-hour chart. The resolution of the pattern will dictate the next phase for the Dogecoin price.

Dogecoin price has been resting in a tight range

Dogecoin price declined about 75% from the May 8 high at a price of  $0.760 to the May 19 low at $0.195, putting it on the higher side of the range for declines in the cryptocurrency complex. However, the Dogecoin did achieve a 70% rally off the May 19 low, closing DOGE price back above the 50-day SMA, a level that has been involved in the price action of the last eight days.

The significant DOGE price decline and ensuing consolidation released the overbought condition on the weekly Relative Strength Index and nudged the daily RSI to the lowest reading since October 2020. Moreover, the daily trade volume on down days has not surpassed the 50-day SMA since May 10. In fact, excluding the May 19 crash, trade volume on down days has been around 25% of the 50-day average, Dogecoin reflecting no rush for the exits by investors or excitement to bid Dogecoin price higher.

Since May 24, Dogecoin's price has been resting in a tight price range supported by the May 12 low at $0.338 and restricted by a combination of the 50 four-hour simple moving average, the descending channel’s upper trend line pattern, and the minor symmetrical triangle’s upper trend line. The combination converges around the price of $0.349.

On the upside, the measured move target for Dogecoin price is at $0.535, and on the downside, it is $0.139. A resolution of the pattern level to the upside will require a heavy volume thrust that may not be possible until the DOGE price resets with a decline down to the triangle’s lower trend line at $0.287.

Following the reset, Dogecoin may be primed to reach the measured move target. First, DOGE will need to overcome the sizeable resistance at a price of $0.349, the 200 four-hour SMA at $0.424, and then the 50% retracement of the May correction at $0.473.

An equally possible outcome for DOGE price is that the reset down to the triangle’s lower trend line will not hold, exposing Dogecoin price to a decline to the descending channel’s lower trend line at a price of $0.187 and possibly to the downside measured move target of $0.139.

MaybeIf Stanley Druckenmiller is correct, and the Dogecoin story is a “manifestation of the craziest monetary policy in history.” Or maybe, it results from a tweet story orchestrated by Elon Musk and Mark Cuban. Whatever the reason, the current Dogecoin chart is an enigma wrapped in a riddle.

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