Dogecoin is Prepping For Major Breakout in April. $0.11 or $0.80?

Dogecoin is trading at its opening price in the 1-week scale. If prices remain the same, it may end the week with no significant price change.

In hindsight, the asset has been notably volatile over the last seven days. It kicked off the period with an over 5% increase and peaked on Wednesday. However, Thursday marked a major turning point as the coin flipped bearish.

It has since erased Monday’s gains, putting the $0.089 support under significant pressure. If bullish sentiment does not return in the next 24 hours, further declines over the coming week are almost guaranteed.

Zooming out, the 1-week chart shows notable demand concentration around $0.087. Based on previous price movement, it is the last line of defense before a drop to a two-month low.

Nonetheless, at the time of writing, the apex memecoin is gearing up for a notable downtrend in the coming days. The moving average convergence divergence currently prints sell signals. A closer look at the 1-day chart shows it had a negative crossover a few days ago.

While the chart shows several other close calls that ended in continuation of the uptrend, the latest divergence is significant, as the MACD histogram prints red bars.

Going by previous crossovers, the latest one is almost guaranteed to result in a notable downtrend. Interestingly, it happened when the asset traded close to a critical support level. It increases the likelihood that the mark will flip in the coming days.

Aside from MACD, the pivot point standard shows that Dogecoin has struggled to decisively flip the PP at $0.096. It has also traded below this critical mark for an extended period, hinting at an imminent breakout.

After several weeks below the PP, the altcoin may retest the first pivot support at $0.076. However, fundamentals may cause a short-term spike

Qubic Switches to Dogecoin

Qubic recently announced a new venture into Dogecoin mining. The firm is one of the largest Monero mining pools, accounting for between 30% and 50% of total mining power. Its recent pivot into DOGE was surprising to many. However, it explained the move was to reorganise computing power and reduce stress on miners.

The initial report yielded no strong reaction from the Dogecoin community. As a result, prices failed to soar on Friday.

Qubic has not fully switched off its Monero mining. The full change will happen on Apr 1. The effect may be instant as miners on Dogecoin increase, pushing the difficulty higher and, most likely, prices. The extent of the uptrend, if there’ll be any, is yet to be seen.

If there’s any, the memecoin may retest $0.096. Nonetheless, the bullish sentiment is dwindling, and the impending event may only provide a short-term relief rally.

The current price structure on the 1-week chart suggests a higher chance of a significant downtrend in April. The altcoin is currently teetering at $0.089. If it falls below the $0.087 support, it may continue to decline until it fills the FVG at $0.079.

In summary, Dogecoin is on the verge of a significant breakout. Indicators on the 1-week and 1-day timeframes suggest a higher chance of 12% decline next month.

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