Dogecoin price eyes 35% upswing as DOGE bulls prepare for comeback

Dogecoin price has been on a downswing since August 16 and is ready for a reversal.
A successful bounce off the $0.262 to $0.281 demand zone indicates a resurgence of buyers.
If DOGE breaks below $0.240, it will invalidate the bullish thesis.

Akash Girimath FXStreet

Dogecoin price hit a dead end after setting up a swing high on August 16. Since this point, DOGE bulls are nowhere to be seen, which resulted in a downswing. However, the retracement pushed the meme coin to a critical support area that will likely trigger an upswing.

Dogecoin price readies for an explosive upswing

Dogecoin price dropped roughly 25% after the August 16 swing high at $0.352. This descent pushed DOGE into a demand zone, ranging from $0.262 to $0.281. This pullback was met with a sudden uptick in buying pressure that has currently pushed Dogecoin price up by 12% to where it is presently.

Going forward, investors can expect the meme coin to continue its upswing until it encounters the $0.328 resistance level. A decisive close above this crucial barrier will open the path to $0.40.

However, in some cases, the upswing could halt at the $0.368 resistance level. The run-up to $0.40 represents a 35% climb from the current position.

DOGE/USDT 1-day chart

On the other hand, if the buyers fail to hold Dogecoin price above the demand zone, extending from $0.262 to $0.281, it will reveal a weak buying pressure and an increased seller activity. Such a move will delay the upswing.

However, a decisive close below $0.240 will invalidate the bullish thesis and, if the crash continues, DOGE could head to $0.230.

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.

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