Dogecoin price edges closer to an 18% breakout
- Dogecoin price needs to clear a resistance confluence at $0.163 to trigger a massive uptrend.
- A daily candlestick close above this barrier will likely result in an 18% breakout to $0.194.
- A breakdown of the $0.128 support level will invalidate the bullish thesis.
Dogecoin price has been stuck producing lower highs since its all-time high in May 2021. More recently, DOGE has been trading under a resistance confluence, a breakout from which will be the key to triggering an uptrend.
Dogecoin price to make a play
Dogecoin price has struggled to maintain momentum after each rally, indicating a massive influx of profit-taking. This has resulted in four lower highs since November 30, 2021, leaving behind a ton of liquidity resting above $0.215.
Connecting these swing highs using a trend line indicates a resistance barrier which coincides with the weekly hurdle at $0.163. Therefore, clearing this blockade is crucial for DOGE to kick-start an uptrend.
Assuming the Dogecoin price flips this ceiling into a foothold, the meme coin will likely explode to $0.194, revealing an 18% ascent. In some cases, DOGE could extend the run-up to $0.215 and collect the liquidity resting above it. This move would bring the total gain to 31% and is likely where the upside will be capped for the meme coin.
DOGE/USDT 4-hour chart
While things are looking tense for Dogecoin price, a failure to clear the $0.163 confluence will indicate a weakness on buyers’ part. This move is likely to knock DOGE down to $0.129. A four-hour candlestick close below this barrier will create a lower low and invalidate the bullish thesis.
A breach of the last line of defense will prove fatal for the meme coin as it could result in a crash to $0.08.
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.
