- Dogecoin price dipped below the demand zone ranging from $0.262 to $0.281 during the September 7 flash crash.
- A recovery above $0.281 will promote an 18% upswing to $0.328.
- If DOGE closes below the $0.24 support barrier, it will invalidate the bullish thesis.
Dogecoin price was due for a massive upswing but failed to manifest it quickly. The market crash on September 7 undid most of the gains and will continue to do so unless DOGE recovers quickly.
Dogecoin price awaits a move above critical levels
Dogecoin price was bouncing off the demand zone extending from $0.262 to $0.281 on August 31 and had rallied 18% with hopes of continuing this uptrend. However, on September 6, the climb seemingly stopped and crashed 31% on the next day, only to close a little higher.
The September 7 daily close was below the lower limit of the demand zone mentioned above, which suggested a bearish development. Regardless, DOGE has another support area, ranging from $0.262 to $0.240, likely to prevent minor downswings.
If Dogecoin price needs to flip bullish, it has to produce a daily close above $0.281. Doing so will open up the path to an 18% upswing to $0.328. If the bullish momentum persists, the 18% climb could extend to a 30% ascent to the $0.367 resistance barrier.
DOGE/USDT 1-day chart
On the other hand, if Dogecoin price slices through the subsequent support level at $0.240, it will invalidate the bullish outlook. This move will confirm that a downswing is around the corner.
In such a case, DOGE will revisit the $0.230 support level, followed by $0.213. Therefore, investors need to keep a close eye on the $0.240 foothold as it could exacerbate the September 7 sell-off.
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.