- Dogecoin price is trying to break through the $0.065 hurdle, which could trigger another rally.
- A breakout above the multi-year, declining trend line could trigger a 35% run-up to $0.089.
- A daily candlestick close below $0.057 will invalidate the bullish thesis for DOGE.
Dogecoin price has been stuck trading between two barriers since August 28. The recent attempt to push through the upper limit indicates that DOGE buyers are ready to push it higher.
Dogecoin price edges closer to a breakout
Dogecoin price has been hovering below the $0.065 hurdle and above the $0.058 support floor for roughly 40 days. The last retest of the lower limit on October 3 resulted in a 13% upswing that is currently grappling with and attempting to break through the upper limit.
A successful flip of the $0.065 hurdle into a support level will indicate a resurgence of buyers and will propel DOGE to contend with the multi-year declining trend line. If the bullish momentum is strong and Dogecoin price slices through this blockade, it will signal a breakout.
A weekly candlestick close above this level will be significant as it will be the first time DOGE closed above it on a weekly basis in more than 500 days. Due to the nature of this move, investors can expect Dogecoin price to sweep the equal highs at $0.089 and collect the buy-stop liquidity resting above it.
In total, this move would constitute a 35% gain for the holders and is likely where a local top might form, depending on the market conditions.
DOGE/USDT 4-hour chart
IntoTheBlock’s Global In/Out of the Money (GIOM) model supports this massive expansion of Dogecoin price up to $0.089. This on-chain metric shows that roughly 352,000 addresses that purchased 60.80 billion DOGE at an average price of $0.088 are “Out of the Money.”
Therefore, a move into this territory could cause a spike in selling pressure due to investors trying to break even.
DOGE GIOM
On the other hand, if Dogecoin price fails to push past the declining trend line or the $0.065 hurdle, it will be a sign that buyers are not ready to make a move. This development could result in a sell-off that could knock DOGE to retest the lower limit at $0.058.
A daily candlestick close below $0.057 will invalidate the bullish thesis for DOGE and potentially trigger a retest of the $0.049 and $0.057 demand zone.
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
Google, Apple could remove Binance from their app store on Philippines SEC request
The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds.
XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations
Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?