Is this sign of a local bottom before Dogecoin price rallies 15%?
|- Dogecoin price attempts recovery after slipping below volume profile’s POC at $0.066.
- A quick flip of $0.066 will confirm a 15% move to $0.078.
- A daily candlestick close below the $0.048 level will invalidate the bullish thesis.
Dogecoin price has completed its liquidity objective and is currently looking ready to move higher. This development could allow traders to realize short-term gains if played correctly.
Dogecoin price takes off
Although the Dogecoin price crashed 71% between April 25 and June 18, the short-term outlook looks much better. The volume profile for the last 100 days shows that the highest volume was traded at $066, which is named Point of Control (POC).
After the recent downswing, DOGE has swept this level and is currently attempting a recovery. If successful, investors can expect a minor uptrend to the recent swing high at $0.074 and, in some cases, a retest of the high-time-frame resistance level at $0.078.
In total, this move would constitute a 17% ascent from the current position.
While this outlook is bullish, investors need to acknowledge the sell-side liquidity resting below equal lows formed at $0.057. A failure to move past the $0.066 hurdle will indicate that market makers will push the Dogecoin price lower.
Since this level coincides with the demand zone, extending from $0.057 to $0.048, a bounce here is highly likely with the short-term targets remaining the same. In a highly bullish case, DOGE could retest the midpoint of the 71% crash at $0.110.
This move, however, would constitute a 90% upswing from $0.057.
DOGE/USDT 1-day chart
On the other hand, if the Dogecoin price produces a daily candlestick close below the $0.048 level, it will create a lower low and will invalidate the bullish thesis. This development could see DOGE move down to $0.045 or $0.040 levels.
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.