Dogecoin bulls wait for the right moment to push DOGE price into breakout

Dogecoin price saw bulls rejected after failing to break above the R1 at $0.29 on Monday.
DOGE price is supported by two elements and could see bulls flocking in to build momentum for a breakout.
On the upside, a retest of $0.35 is more than overdue.

Dogecoin price continues its slow grind higher after being rejected by the monthly R1 resistance level for the second time this month. As bulls start to add more DOGE to their positions, momentum is building for a breakout trade. In the event the breakout is successful, the first resistance bulls will face will be at around $0.3, which goes back to mid-June.

Dogecoin price sees bulls building momentum for a retest of $0.35

Dogecoin price failed to benefit from any of the positive news out of Tesla, Elon Musk and the Nasdaq index. Instead, DOGE price saw bulls rejected yesterday after their attempt to break above the monthly R1 resistance level at $0.29 – it was their second attempt this month. With the slight fade today, bulls remain optimistic and are using that opportunity to add more volume to their long positions, and a breakout looks set to happen soon.

DOGE price is offering bulls a good technical reason for going long at the historical $0.26 level and the bounce off the red descending trend line from August 17. In case that does not hold, bulls could make a fade-in trade with the monthly pivot, and the 55-day Simple Moving Average at around $0.24, with both seen as supporting elements. Once the breakout unfolds, expect bulls to first hit $0.35 and next $0.45, with the latter incorporating a 76% gain from the current DOGE price level.

DOGE/USD daily chart

Should global markets start to tumble with reemerging worries on the reflation trade, or should a global rise in Covid cases put certain important regions back into lockdowns, expect cryptocurrencies to correct heavily. DOGE price would quickly see bulls fleeing the scenes and bears coming in, pushing price action back against the green ascending trend line. A break below would push price-action back towards $0.13.

Share: Cryptos feed

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.