Dogecoin price attempts a 13% advance as DOGE sets a perfect reversal point
|- Dogecoin price is setting up a triple bottom setup on a 4-hour time frame, suggesting a reversal is likely.
- Investors can expect DOGE to rally 13% and retest the $0.191 resistance level.
- A breakdown of the $0.20 support floor will create a lower low and invalidate the bullish thesis.
Dogecoin price has been stuck trading below a vital resistance level and hovering around a crucial support floor. While a breakdown of this foothold could result in a massive downswing, DOGE has not done it yet. As of this writing, the meme coin eyes a minor upswing.
Dogecoin price looks to contest significant hurdles
Dogecoin price has set up a triple bottom pattern after tagging the $0.168 support level thrice over the past week. This price action could result in a short-term increase in buying pressure, leading to a 13% ascent to $0.191.
Due to consolidative price action between December 24 and December 27, 2021, there is now pent-up buy-stop liquidity resting above $0.191, and market makers are likely to push DOGE higher in the short term. Traders can open a long position from the current level at $0.169 and take profits at $0.191.
Interestingly, the 50-day Simple Moving Average (SMA) coincides with $0.191 lending credence to the target for Dogecoin Price.
DOGE/USDT 4-hour chart
On the other hand, if the Dogecoin price fails to bounce off the $0.169 support floor due to increased selling pressure, DOGE will likely revisit the $0.159 demand barrier.
A breakdown of this foothold will create a lower low and invalidate the bullish thesis. In this case, Dogecoin price could crash 5% to tag the subsequent support level at $0.151.
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.