Dogecoin price is next in line to explode after XRP

Dogecoin price has produced its first higher low after a long downtrend, hinting at a reversal.
Investors should now expect DOGE to ricochet between the $0.0587 and $0.0650 barriers.
A daily candlestick close below $0.0491 will invalidate the bullish theiss for the meme coin.

Dogecoin price shows a strong affinity to recover losses as it digs itself out of a stable demand zone on a wave of buying pressure. With Bitcoin resolving its downside liquidity, the big crypto ought to help DOGE move higher in tandem.

Dogecoin price to make holders happy

Dogecoin price crashed 13% between September 11 and September 22 after getting rejected by the $0.0650 hurdle. This move pushed DOGE below the $0.0587 support level, where it currently hovers.

Between September 19 and 22, however, DOGE regrouped and formed a double bottom that has pushed it up by 5%. As Dogecoin price grapples with the $0.0587 hurdle again, all eyes are on a potential recovery.

If DOGE can flip the blockade at $0.0587 into a support floor, it could trigger an 11% run-up to the next significant resistance level at $0.065. As long as the meme coin stays between these barriers, investors can trade the oscillations, going long the support and short the resistance levels.

In a more bullish scenario, if Dogecoin price can overcome the long-standing declining trend line, it could attempt a rally higher to $0.0890. Since equal highs are formed here, market makers will likely aid DOGE with a back draught, pushing it higher to sweep this level and collect liquidity.

DOGE/USDT 1-day chart

While things are looking up for Dogecoin price, a failure to push past the $0.0587 hurdle will indicate underlying weakness. If DOGE produces a daily candlestick close below the demand zone’s lower limit at $0.0491, it will invalidate the bullish thesis altogether.

This development could see Dogecoin price move to $0.0471 to regroup and give the recovery rally another go.

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.