Dogecoin price action from January 30 to-date has resulted in a continuation pattern known as “bull flag”.
The technical formation predicts a 75% bull rally.
This target puts DOGE at $0.1.
For a successful breakout, DOGE needs to move past an immediate resistance level at $0.055, which coincides with the 50% Fibonacci retracement level.
However, only a four-hour candlestick close above $0.058 would confirm a bullish breakout.
Also, Dogecoin is facing mounting sell pressure from multiple technical indicators.
The 50 four-hour moving average (MA) and the 100 four-hour MA have moved above the price. This development might threaten any future short-term buying momentum.
Therefore, if Dogecoin price slices below the initial support at $0.047 or the 38.2% Fibonacci retracement level, it could trigger a 20% sell-off. This drop puts DOGE at $0.037, which coincides with the 23.6% Fibonacci retracement level.
