- Dogecoin price retraced 25% from a swing high at $0.217 to find support around the $0.163 barrier.
- A resurgence of bullish momentum could trigger a 30% advance for DOGE.
- A breakdown of the $0.134 support level will invalidate the bullish thesis.
Dogecoin price has seen three major uptrends face blockade around the same hurdle. The most recent rally failed to breach this barrier, leading to a steep correction. The said retracement seems to have found a stable support floor, indicating a reversal.
Dogecoin price reveals a turnaround
Dogecoin price rallied 51% after Tesla CEO Elon Musk’s announcement on January 14. However, this reveal, like many other tweets from the executive, failed to sustain the momentum leading to a massive correction.
So far, DOGE has rallied three times above the $0.215 resistance barrier and has retraced below it every single time. The correction from the most recent rally is hovering around the weekly support level at $0.163, just below the 50-day Simple Moving Average (SMA) at $0.172.
A resurgence in buying pressure could be the key to triggering a 17% ascent to $0.194. While there is a good chance this hurdle could cap the upside for Dogecoin price, a breach could see the meme coin continue its journey north.
The $0.215 resistance barrier has a slew of buy-stop liquidity resting above it and is likely where the objectives of market makers reside. So, investors can expect the minor uptrend to extend to $0.215, bringing the total advance to 30%.
DOGE/USDT 1-day chart
On the contrary, if the Dogecoin price fails to hold above the $0.163 support level, it will retrace to the daily demand zone, extending from $0.134 to $0.152. Here, buyers have another chance at a comeback.
If the Dogecoin price produces a daily candlestick close below $0.134, it will create a lower low, invalidating the bullish thesis. This move could knock DOGE down to the $0.129 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. 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.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.