- Dogecoin price consolidates around $0.367, awaiting a lift-off.
- A decisive close above $0.40 will confirm the start of an upswing.
- The bullish thesis will face invalidation if DOGE creates a new swing low below $0.311.
Dogecoin price shows signs of ending its consolidation as it makes headway. The recent swing high created on June 2 is a palpable sign of the evolving uptrend. DOGE needs to breach past a crucial resistance barrier to signal the start of an impulsive wave higher.
Dogecoin price eyes a higher high
Dogecoin price corrected 60% from May 18 to May 19 as it dropped from $0.515 to $0.213. After this nasty fall, DOGE set up the first swing high on May 20 at $0.435 and the second one on June 2 at $0.448, signaling the evolution of a new uptrend.
So far, the swing lows have been intact with Dogecoin price consolidating in a tiny range, indicating that it wants to move higher. A trigger or a confirmation for this rally will arrive after the meme coin produces a swing high above $0.40.
Clearing the level mentioned above will trigger an explosive 12% leg-up to the immediate barrier at $0.45. If the buyers push past this ceiling, Dogecoin price is likely to test the lower boundary of the supply zone extending from $0.481 to $0.515.
All in all, the move from $0.40 to $0.481 would represent a 30% bull rally.
In an extremely optimistic scenario, DOGE might slice through the resistance area, which will open up the path to $0.571.
DOGE/USDT 4-hour chart
On the other hand, if DOGE price fails to climb above $0.40, it will signal weak buyers. However, the bullish thesis will face invalidation if Dogecoin price creates a new swing low lower than $0.311, which was set up on June 01.
In such a case, there is a chance that the meme coin might witness a 7% sell-off to the immediate support level at $0.293.
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.