- Dogecoin has rallied 25% in a week.
- The Volume Profile Indicator has stayed relatively low during the ascension.
- Invalidation of the downtrend will result from a breach above $0.112.
Dogecoin price prediction could be a sucker's rally. Placing a short entry will be justifiable if bulls cannot hold support above $0.085.
Dogecoin price digs deep
Dogecoin price prediction shows reasons to be concerned. Analysts have been eyeing the notorious dog coin throughout the summer as the DOGE price fell into considerably discounted price territory at $0.050. Several bullish outlooks were forecasted, some mentioning the possibility of a potential market bottom near the $0.049 low established on June 19, 2022. Dogecoin price has been able to rally 25% since the last thesis was published, but the strength of the move merits concern for the mid-term targets and FOMO-style bull run that everyone is hoping for.
Dogecoin price currently trades at $0.0842 as price consolidates near a previous support zone that the bears successfully breached during an early May liquidation. This is the first time DOGE price will be reacquainted with the breached barrier since the plummet. Classical price action techniques suggest that the mid-$0.08 barrier will likely act as resistance and reject uptrend momentum. The volume profile indicator supports this idea as the bulls have not yet displayed an increase in transactions relative to previous bull runs.
DOGE/USDT 1-Day Chart
When combined, it appears that the Dogecoin price could be articulating a sucker's rally-style retracement before the next sell-off occurs. Investors should be aware that the notorious dog coin has strong confluences pointing to a $0.020 price zone (mentioned in previous outlooks). Subsequently, the DOGE price could fall as low as $0.010 without invalidating the bullish macro count.
Still, an invalidation point of the downtrend scenario is necessary to define the correct trend. The bearish thesis will be void if the bulls can break through $0.112. In so doing, the DOGE coin price will be able to rally towards a conservative $0.250 target resulting in a 150% increase from today's market value.
In the following video, our analysts deep dive into the price action of Dogecoin, analyzing key levels of interest in the market. -FXStreet Team
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.