Dogecoin Demonstrates Relative Strength: Breakout Signal Identifies Price
Dogecoin has displayed remarkable resilience compared to the general weakness seen in the broader cryptocurrency market, as noted by trader Daan Crypto Trades (@DaanCrypto). In his recent chart analysis posted on November 13, he highlighted a potential “range retake” scenario that could lead to a move towards the previous range high of approximately $0.218, provided that DOGE manages to surpass and maintain levels above $0.18.
The trader emphasized Dogecoin’s relative strength in a market environment that is characterized by choppy and weak trading conditions. At the time of his analysis, Dogecoin was trading around $0.172 on Binance, positioned just below a crucial green support band indicating the range low within the $0.17 to $0.18 range. The upper end of the range, marked at $0.21817, stands as the target for an upward movement if the price can reclaim the lower boundary. Daan considers a move of 23.1% from the band to the top of the range as technically significant given the right momentum.
One factor that Daan pointed out as potentially influencing Dogecoin’s recent performance is the discussion surrounding proposed $2,000 stimulus or dividend checks by the Trump administration in US markets. He highlighted the psychological link that many retail traders still have to the “stimmy check” era of 2020–2021, during which Dogecoin emerged as one of the top-performing assets.
In terms of technical analysis, the setup being monitored by Daan is relatively straightforward: Dogecoin had previously broken below its established range, experienced a decline to lower lows, and is now attempting to reclaim position within the band. His chart illustrates two rounded swing lows, hinting at the formation of a potential base. A reclaim of the green zone, confirmed by a strong close above $0.18, would indicate a loss of control by sellers and draw attention to the upper boundary at $0.218.
Despite his optimism, Daan is cautious about external factors influencing Dogecoin’s price movement. He acknowledges the risk associated with changes in the broader market environment and explicitly states that a breakdown in the market dynamics, even if Dogecoin briefly trades above $0.18, could invalidate the scenario.
When questioned about his biased focus on long setups, Daan clarified that he engages in both long and short positions for short-term scalping trades, but notes that short setups tend to provoke negative reactions from followers. He explains that long setups typically offer more favorable risk-to-reward ratios for most traders, especially after significant market events like the liquidation flush observed on October 10.
In summary, the current focus remains on Dogecoin’s potential to reclaim its range and establish strength above $0.18. Its performance is closely tied to the broader market movements of Bitcoin and Ethereum, indicating that market conditions could significantly influence the meme coin’s relative strength in the coming days. As of the latest update, Dogecoin was trading at $0.15943.
