Dogecoin price could rally 30% in September, here's why

Dogecoin price is down 37% since August.
DOGE price has fallen under low volume.
Invalidation of the countertrend idea is a breach below $0.049.

Dogecoin price could witness a profitable rebound in the coming days.

Dogecoin price recovery rally

Dogecoin price is worth keeping on your watchlist if you are an active day trader. On September 19, the notorious meme coin showed signals that could prompt a 30% rally in the short term.

Dogecoin price currently auctions at around $0.058, following a 37% downtrend since the August 16 failed breakout. The penny-from-Eiffel style decline has provoked day traders to persistently take a jab at trying to buy the falling DOGE price. A change in market behavior can be noted as Dogecoin's recent stair-step decline in the last week comes under low volume.

DOGE USDT 8-Hour Chart

A Fibonacci Retracement tool surrounding the August high at $0.089 and the most recent swing low at $0.056 shows a 61.8% retracement level in the mid $0.07 zone. If the technicals are correct, retail bears may be in for a rude awakening as a 30%rally could ensue to tag the magnet-like price levels. Additionally, there are subtle bullish divergences on the 4-hour chart, which could be Smart Money sneakily entering the market.

Invalidation of the bullish countertrend thesis should not be the recent swing low. A safer invalidation at the current time is the June 18 swing low at $0.049. This creates enough wiggle room for traders to avoid any last-minute liquidity hunts before the anticipated countertrend rally occurs.

In the following video, our analysts deep dive into Dogecoin's price action, analysing key market interest levels. - FXStreet Team

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.