Dogecoin price eyes 30% gains as DOGE bulls put an end to retracement

Dogecoin price has seen three major uptrends face blockade around the same hurdle. The most recent rally failed to breach this barrier, leading to a steep correction. The said retracement seems to have found a stable support floor, indicating a reversal.

Dogecoin price reveals a turnaround

Dogecoin price rallied 51% after Tesla CEO Elon Musk’s announcement on January 14. However, this reveal, like many other tweets from the executive, failed to sustain the momentum leading to a massive correction.

So far, DOGE has rallied three times above the $0.215 resistance barrier and has retraced below it every single time. The correction from the most recent rally is hovering around the weekly support level at $0.163, just below the 50-day Simple Moving Average (SMA) at $0.172. 

A resurgence in buying pressure could be the key to triggering a 17% ascent to $0.194.  While there is a good chance this hurdle could cap the upside for Dogecoin price, a breach could see the meme coin continue its journey north.

The $0.215 resistance barrier has a slew of buy-stop liquidity resting above it and is likely where the objectives of market makers reside. So, investors can expect the minor uptrend to extend to $0.215, bringing the total advance to 30%.

DOGE/USDT 1-day chart

On the contrary, if the Dogecoin price fails to hold above the $0.163 support level, it will retrace to the daily demand zone, extending from $0.134 to $0.152. Here, buyers have another chance at a comeback. 

If the Dogecoin price produces a daily candlestick close below $0.134, it will create a lower low, invalidating the bullish thesis. This move could knock DOGE down to the $0.129 support level.