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.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
