- Dogecoin price has been traversing the $0.049 to $0.078 range, created after a 60% upswing between June 18 and June 26.
- A 15% retracement seems plausible for DOGE and could serve as a buy level for swing traders.
- A daily candlestick close below $0.049 will invalidate the bullish thesis for the meme coin.
Dogecoin price shows the possibility of a quick retracement to significant support levels that could, from a macro perspective, kick-start an upswing. Investors need to pay close attention to this downswing as it could potentially trigger another recovery rally.
Dogecoin price and its potential
Dogecoin price rallied roughly 60% between June 18 and June 26 and set a range, extending from $0.049 to $0.078. As bullish momentum exhausted, DOGE retraced 20% and bounced off the midpoint at $0.063.
While the bounce makes sense, the development in Bitcoin price could send DOGE lower to other significant levels. The deep-discount mode, extending from $0.055 to $0.060 is an important area, where swing traders could start to build up positions.
A bounce from the $0.057 level could trigger a 41% ascent to $0.082, which also coincides with the declining weekly trend line. Hence, this is where Dogecoin price could limit its ascent.
However, if bullish momentum is strong, Dogecoin price could finally overcome the declining trend line that has kept DOGE subdued for more than a year. In such a case, DOGE could rally to $0.093 and $0.109.
In total, this move would roughly constitute a 90% ascent.
DOGE/USDT 1-day chart
While the overall outlook for Dogecoin price remains slightly bullish, investors should note that a daily candlestick close below the range low at $0.049 will create a lower low. Such a development will invalidate the bullish thesis for the meme coin.
In such a case, Dogecoin price could drop 5% and revisit the $0.047.
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