Dogecoin upside is limited to $0.20 as DOGE continues to coil up
|- Dogecoin price coils up under a declining trend line, suggesting a dearth of volatility.
- A breakout from this barrier is likely to propel DOGE to $0.163, constituting a 23% run-up.
- A daily candlestick close below $0.127 will invalidate the bullish thesis for DOGE.
Dogecoin price is stuck producing lower highs and equal lows between two crucial barriers. As this price action progress, DOGE becomes increasingly coiled up. A breakout from this consolidation is likely to pop, leading to a quick run-up.
Dogecoin price to launch soon
Dogecoin price has set four lower highs and three equal lows since November 2021. A trend line drawn rough along the candlesticks of these swing highs shows a declining resistance barrier.
As DOGE gets squeezed between the aforementioned trend line and the $0.127 support level, it signals a breakout will be explosive. Dogecoin price is currently bouncing off the horizontal barrier and will make a 15% run for the declining trend line.
A decisive close above this hurdle will open the path for DOGE to retest the weekly resistance barrier at $0.163. This move would represent a 23% ascent from the current position - $0.132. There is a good chance for DOGE to form a local top around $0.163, but a resurgence of buying pressure combined with market makers’ intent to collect liquidity might propel the meme coin to retest the $0.194 hurdle and sweep above it.
This extension would bring the total gain from 23% to 47% for the Dogecoin price.
DOGE/USDT 1-day chart
While things are looking exceptionally optimistic for Dogecoin price, a failure to move past the declining trend line will indicate a weakness on buyers’ part. However, if DOGE produces a daily candlestick close below $0.127, it will create a lower low and invalidate the bullish thesis.
In this scenario, Dogecoin price could crash 41% and revisit the $0.0746 support level.
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.