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.
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.
