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Dogecoin price could reclaim $0.1 if it rises above this critical level

  • Dogecoin price has been struggling to breach the $0.0914 resistance support.
  • In order to mark an 18.5% rise, DOGE needs to generate buying pressure.
  • Invalidation of the bullish thesis could see DOGE breaking down from the critical support at $0.0783.

Dogecoin price has been following the broader market cues, but with recovery taking a while, DOGE has ended up moving sideways. This movement is expected to build bullish momentum, which could take the altcoin to $0.1000, provided it can flip these resistance levels into support levels.

Dogecoin price needs a boost

Dogecoin price declined by almost 43% following the broader market crash caused by FTX's collapse. The altcoin formed a lower low at $0.0790 and has since been on a gradual rise. Currently trading at $0.0850, the meme coin needs the bulls' support to push it back up.

As visible on the Relative Strength Index (RSI), the buying pressure has not been increasing significantly, keeping the altcoin stuck under the $0.0914 resistance level. If this changes and an influx of buying is noted, DOGE could retest the $0.0914 resistance level a further time, potentially breaking above and even flipping it into support. 

Although, it will still need to breach through the inefficiency at $0.0962, labeled as the Fair Value Gap (FVG). If it can, and it rises above this price point, it will be closer to achieving its 18.5% rally and tagging $0.1000.

DOGEUSD 4-hour chart

DOGEUSD 4-hour chart

However, investors expecting 100% good news must hold off before investing as the crypto market is still pretty vulnerable to corrections. Thus, if the bullish outlook fails and prices begin trending downward, DOGE could be looking to test its immediate support level at $0.0783.

A bounce off it would place it back in the consolidation within its current range of immediate resistance and support. But a further breakdown would lead to the cryptocurrency falling to the $0.0729 low.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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