fxs_header_sponsor_anchor

Dogecoin price could double within the next few weeks

  • Dogecoin price is experiencing a sell-off as it pierced the $0.230 to $0.212 support floor.
  • A decisive close below $0.195 will likely knock DOGE down to $0.16.
  • Investors can expect the meme coin to kick-start a 100% uptrend after a bounce from $0.16.

Dogecoin price has been on a slow and steady downtrend. However, this correction is undoing its recent gains and is close to converting a crucial support area into a resistance barrier. While the current outlook is bearish, this descent will set up a much-needed bottom reversal pattern, propelling DOGE to nearly double in value.

Dogecoin price looks for launching pad

Dogecoin price rose 38% between September 28 and October 2, slicing through the $0.212 to $0.230 resistance area and flipped it into a support barrier. While this was a bullish development, the altcoin markets started seeing a declining interest among users as rumors of Bitcoin ETF began circulating.

Perhaps capital rotating out of altcoins and into BTC could be the culprit that triggered the ongoing downswing, which led Dogecoin price to correct 18% and is currently trading inside the said barrier. A decisive close below $0.212 will indicate that the bulls are losing, and the chances of extending this retracement are high.

In such a case, Dogecoin price will revisit the September 29 swing low at $0.195, where it has a chance to form a double bottom and reverse the downswing.

A failure to make a comeback here will drag the meme coin down to $0.1789 or a stable demand level at $0.16. Here, Dogecoin price will form a triple bottom setup, signaling that a massive uptrend awaits DOGE holders. 

Assuming a similar rally begins, Dogecoin price will slice through the temporary barriers and make a run for the liquidity resting above the September 6 swing high at $0.314. This run-up would constitute a 97% ascent from $0.160.

DOGE/USDT 1-day chart

On the other hand, if Dogecoin price fails to defend $0.16, things will turn bearish for the meme coin. Market participants can expect a 25% downswing to drag DOGE down to the nearest support level at $0.121.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.