• Dogecoin price shows an explosive launch at the start of its 60% journey.
  • While the short-term play for DOGE is bullish, investors should consider the ramifications from a big-picture perspective.
  • A daily candlestick close below the $0.0471 support level could trigger a brutal sell-off for the meme coin.

Dogecoin price shows that the bulls are back in town and have already triggered a journey to the upside. While this outlook was expected in our previous publications, this article will also take a look into the macro outlook for DOGE.

Dogecoin price and the short-term outlook

Dogecoin price was primed for a 60% ascent after it breached the volume point of control, or level of greatest traded volume, at $0.0665 on August 4. Secondary confirmation came after DOGE penetrated above  a key declining trend line on August 7. 

As a result, Dogecoin price has rallied 7% so far and shows signs of continuing this trend to $0.110 - the midpoint of the $0.0497 to $0.170 range. However, to reach this short-term target, DOGE needs to clear the intermediate resistance level at $0.0776. Although clearing this hurdle would ease its journey, it does not guarantee it. 

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

This development for Dogecoin price will fail if the volume point of control at $0.0665 turns into resistance. One reason this might happen is if traders push the market down to seek out and collect the liquidity resting below the equal lows at $0.0573.

Even if Dogecoin price retreats, the presence of liquidity inside the $0.0480 to $0.0577 demand zone, is likely to make this level into a launching pad for bulls and a good buy opportunity for short-term traders.

Forewarning on DOGE’s macro outlook 

While the short-to-mid-term outlook of Dogecoin price looks bright, a breakdown of the $0.0417 support level will indicate an infestation of bears and trigger a massive sell-off. Adding credence to this outlook is the fair value gap, aka price inefficiency zone extending from $0.0413 to $0.0140. These areas are formed when an asset moves quickly away from a particular direction. Such a move would involve a 70% drop from the $0.0417 support level.

The area between the two FVGs spanning from $0.0417 to $0.0098 could serve as a potential macro bottom, but investors should consider the possibility of a sell-off ‘wick’ reaching as low as $0.0050 due to the presence of another inefficiency.

These levels could serve as good levels for Dollar-Cost Averaging (DCA), the practice of investing the same amount of money in target security at regular intervals over a certain period of time, regardless of price, in order to deal with market uncertainty. 

DOGE/USDT 1-week chart

DOGE/USDT 1-week chart

Regardless of the inefficiencies, if Dogecoin price slices above the declining trend line at $0.0820, it will indicate a massive resurgence of bullish pressure. In such a case, the bearish thesis will have to wait while bulls take control.

If that is the case, Dogecoin price could make a run for $0.109 and $0.181, depending on the extent of bullish momentum.

 


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


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP