- Dogecoin price is consolidating in a tight range under the $0.273 resistance level.
- An explosive uptrend is likely to breach the supply zone ranging from $0.280 to $0.312.
- If the buyers fall short and break down the $0.230 stable demand barrier, it will invalidate the bullish thesis.
Dogecoin price is currently hovering below a suite of resistance levels, preventing it from climbing higher. A swift breach of these barriers is likely considering the consolidation that DOGE is undergoing.
Dogecoin price awaits a breakout
Dogecoin price rallied 42% between August 6 and August 8 in one fell swoop. This explosive run-up came after an extended sideways movement before it. At the time of writing, DOGE is also consolidating under the $0.273 resistance barrier.
While a breakout from this coiling price action could head either way, investors can expect a bullish breakout. This directional bias is due to the overall structure of the big crypto, which is leaning toward the buyers.
Although the upswing is plausible, it is not apparent due to the presence of the supply zone ranging from $0.280 to $0.312. A decisive 12-hour candlestick close above $0.312 will indicate a resurgence of buyers. This move opens up the path to the next ceiling at $0.328.
This leg-up from $0.257 to $0.328 constitutes a 25% advance for Dogecoin price.
DOGE/USDT 12-hour chart
While the upswing narrative might seem a bit forced, DOGE might fail to slice through the supply zone, stretching from $0.280 to $0.312. A failure will indicate weak buying pressure and allow the bears to run rampant.
In such a case, investors can expect a retracement to the $0.230 support level. While this downswing does not hurt the optimistic narrative, it might delay the ascent.
However, if the bears shatter $0.230, it will invalidate the bullish thesis and potentially trigger a crash to $0.213.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.