Dogecoin (DOGE) price is approaching a key bullish breakout level that could trigger a major bull run later in the week. This would be the strongest bullish signal in almost a year if confirmed.
Doge May Return to $0.25
From an Ichimoku perspective, this coin price action is very close to confirming an ideal bullish Ichimoku breakout. The only condition missing is the daily bar close above the Ichimoku Cloud.
On May 31, 2022, the price that Dogecoin would need to close to confirm an ideal bullish Ichimoku breakout was $0.16 – but that threshold has now dropped. The threshold at which the coin needs to close on Saturday’s daily candle is around $0.146 and so far, it’s even dipped below $0.14.
Daily Ichimoku chart offers a hypothetical long opportunity on Caro chart $0.01/3-box reversal for the coin. The long idea is a buy stop order at $0.17, stop loss at $0.13 and a profit target of $0.29.
An entry of $0.17, if triggered, would confirm a breakout above the double top and also establish a bear trap in the P&F analysis. The formation of a bear trap at the low end of the current downtrend increases the likelihood of a successful and sustained bullish breakout.
The hypothetical long opportunity for coin price represents a reward/risk ratio of 3:1. The 3-cell stop will help protect any potential profits once the entry is triggered. Buyers should anticipate significant selling pressure at the psychological $0.25 level before targeting an expected profit of $0.29.