- Dogecoin price is bouncing off a support level at $0.311 after a 17% drop.
- A quick 25% run-up to the 50% Fibonacci retracement level at $0.393 seems likely.
- If DOGE breaks below $0.264, it will invalidate the bullish outlook.
Dogecoin price has been on a slow descent since June 2 that took it below the mid-way point of a small range, indicating increased sellers. DOGE bulls' intention of reverting to the mean is apparent as it trades above a demand barrier.
Dogecoin price ponders an ascent
Dogecoin price dropped roughly 30% over the past week to the point where it is currently trading, $0.317. This crash extended 20% lower from the 50% Fibonacci retracement level at $0.393, suggesting massive selling pressure.
However, as DOGE teeters on the support level at $0.311, the bulls are planning a comeback that could push the meme coin up to $0.393, which is roughly a 27% impulse move.
While the scenario mentioned above is plausible, investors need to keep a close eye on the resistance levels at $0.350 and $0.380, which may slow down or halt the upswing.
Although a move above $0.393 is likely, it will be short-lived unless there is massive buying pressure.
DOGE/USDT 4-hour chart
Market participants must note that the bullish narrative will be valid until DOGE stays above $0.280. However, a decisive close below $0.264 will invalidate the optimistic outlook and kick-start a downtrend.
In this case, the meme-themed cryptocurrency might slide 7% to the subsequent demand barrier at $0.246.
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.