Dogecoin price eyes 17% gain as DOGE reveals a bottoming structure

Dogecoin price is forming a bottoming structure around the $0.151 barrier, signaling an uptrend is near.
A recovery above the $0.151 support floor will trigger a 17% rally to the $0.176 resistance level.
A four-hour candlestick close below the $0.147 foothold will invalidate the bullish thesis.

Dogecoin price has been compounding its losses after it breached a crucial support level on January 5. However, the recent price action shows that DOGE is forming a bottom and will likely reverse the trend and kick-start an upswing.

Dogecoin price vies for a new high

Dogecoin price exhibited a fractal on January 3, which consisted of a failed triple bottom setup followed by a massive uptrend. However, this outlook failed to provide value as DOGE sliced through the $0.159 and $0.151 support floors, invalidating the fractal.

However, after breaching through the $0.151 support level, Dogecoin price has set a swing low at $0.147. Soon thereafter, DOGE set up another lower low, effectively collecting the liquidity and signaling a typical bottoming structure.

Therefore, investors can expect Dogecoin price to recover above the $0.151 and $0.159 barriers and make a 10% run for the $0.168 resistance barrier. In a bullish case, the market makers are likely to propel DOGE to sweep above the $0.176 hurdle to collect the buy-stop liquidity resting above it.

DOGE/USDT 4-hour chart

Investors should note that the bottoming structure might see another swing low piercing the $0.147 support floor before the uptrend kick-starts. However, if DOGE produces a four-hour candlestick close below $0.147, it will invalidate the bullish thesis.

In this scenario, market participants can expect the Dogecoin price to crash 12% and revisit the $0.129 support level.

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.

Cryptos feed Join Telegram