Dogecoin price edges closer to an 18% breakout

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.