Dogecoin price could trigger an explosive rally to $0.106 if these conditions are met
- Dogecoin price has pierced through the hurdle at $0.0813 and is attempting to use it to propel higher.
- A bounce off this level could catalyze a 10% move to the selling climax at $0.0946.
- Invalidation of the bullish thesis will occur if DOGE flips $0.0813 into a resistance level.
Dogecoin price shows a clear sign of bouncing off a stable support level. With the help of the resetting bullish momentum, DOGE could kick-start a quick rally.
Dogecoin price prepares for another leg
Dogecoin price has recovered above the selling climax at $0.0705 and rallied 32%. In its ascent, DOGE has also flipped the $0.0813 hurdle into a support level. As the dog-themed crypto trades around the $0.0856 level, investors can expect range tightening or a retest of the immediate support level at $0.0813.
The Relative Strength Index (RSI) has pulled back from the overbought region to the midpoint, suggesting that the bulls now have a chance to make a comeback. A reset of the RSI at 50 could be the catalyst that triggers Dogecoin price to kick-start a rally to tag the buying climax at $0.0946.
While this is a conservative outlook, a successful flip of this hurdle into a support floor on the daily time frame will allow Dogecoin price to scale to $0.106, bringing the total gain to 30%.
DOGE/USDT 1-day chart
On the other hand, if Dogecoin price fails to sustain above $0.0813, it will signal a weakening bullish camp. A flip of this level into a resistance level will invalidate the bullish thesis and favor profit-taking. In such a case, DOGE could slide 12% to revisit the selling climax at $0.0705.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
