- Dogecoin price is hovering around $0.066, the highest traded volume level for the last 100 days.
- For massive gains to kick start, DOGE needs to sweep the liquidity resting below the equal highs at $0.057.
- A breakdown of the $0.048 to $0.057 demand zone will invalidate the bullish thesis.
Dogecoin price is at that point in its lifespan, where long-term investors need to wait and short-term investors ignore it due to a lack of volatility. This crossroads for DOGE, however, offers a massive payout for patient market participants that are ready to wait for things to fall into place.
Dogecoin price hatches a comprehensive plan
Like many altcoins, Dogecoin price nosedived 71% due to the LUNA-UST fallout between April 25 and June 18. Regardless, the crypto markets formed a collective bottom in mid-June and have been on a recovery path since.
However, checking the volume profile for DOGE for the crash shows that the highest volume was traded at the $0.066 level, aka Point of Control (POC). This barrier serves as a support and resistance level, relative to the price.
Currently, DOGE is trying to bounce off this level, but the market condition seems to be deteriorating due to the recent breakdown of Bitcoin below the 200-week Simple Moving Average (SMA) at $22,749.
From a technical perspective, a breakdown of the POC is in the best interest of Dogecoin price and long-term investors since it would allow DOGE to retrace and collect the sell-side liquidity resting below equal lows formed at $0.057.
Shedding an optimistic light on this narrative is the presence of the $0.057 to $0.048 demand zone. In combination, a pullback into $0.057 will serve as a perfect launching pad for Dogecoin price to kick-start its next leg.
The level that is significant and could hinder this potential rally is the midpoint of the 71% crash at $0.110. Assuming DOGE does retest the aforementioned barrier, it would constitute a 90% upswing.
DOGE/USDT 1-day chart
While the idea of a 90% upswing for DOGE seems appealing, investors also need to consider the invalidation thesis. If the Dogecoin price fails to react to the demand zone due to excessive selling, things could turn ugly swiftly.
A daily candlestick close below the demand zone’s lower limit at the $0.048 level, will not only invalidate the structure but also create a lower low, shifting the narrative favoring bears. This development will also put an end to the bullish thesis and could result in Dogecoin price retracement to $0.045 or $0.040 levels.
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.