Dogecoin price to break weekly high and tag $0.16

• Dogecoin price sees investors gearing up for a break to the upside.
• Although global markets turned to risk-off, DOGE price action signals an imminent pop.
• Expect with the break of the weekly high to test $0.16.

Dogecoin (DOGE) price action rebounded this morning in the European session after nearly testing  $0.1360 again. With the rebound, it looks as though bulls are set to see an acceleration in the US sessions that could take out the weekly high from yesterday and target the first significant resistance level at $0.16. As the end of the week is just around the corner, expect this to set the scene for further upside going into next week.

DOGE has bulls interested with 12% gains of low hanging fruit

Dogecoin price sets the stage for a pop higher as it only takes two time zones to shake off the more hawkish comments of the US Federal Reserve. The ASIA PAC session pushed DOGE price action to the downside, but bulls in the European session cut short the bearish attempt and made a U-turn even before the price could properly bounce off the historical $0.1360 level. Another good incentive for bulls to step in is that the Relative Strength Index is staying relatively flat, suggesting the US session will accelerate demand and buying volume.

With the pickup in demand, expect the weekly high to be broken to the upside and for $0.16 to act like a magnet for bulls who may be sitting on their hands before starting to book some profits or take off parts of their trades. With that move, the Relative Strength Index (RSI) will have moved to the middle of the equation between buyers and sellers and thus still have some room to go higher in the coming days and next week, with more gains on the table. Indeed, a weekly close above $0.16 would see a further continuation of the uptrend going into next week, with $0.19 possibly on the docket to be hit too.

DOGE/USD daily chart

Although markets look bullish, some looming headwinds could quickly overhaul the current tailwinds and drive markets to the downside. This could result in bulls getting squashed against $0.1360, and with that, possibly a break and stops being run, which may trigger colossal demand on the selling side. With this, the risk is that price action could dip back below the red descending trend line, which would point to a reboot of the downtrend and set the stage for $0.09 from a break below $0.1.

 

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