Share:
  • Dogecoin price is trading above a demand zone, extending from $0.224 to $0.289.
  • If the bid orders pile up, DOGE could rally 37% to tag $0.40.
  • A decisive close below $0.212 will invalidate the upswing narrative and kick-start a sell-off.

Dogecoin price is fast approaching a critical demand zone that will decide the meme coin’s fate for the foreseeable future. A bounce from this pivotal area will allow buyers a chance to push DOGE to pre-crash levels and higher, but a failure will take it to lows last seen in mid-April.

Dogecoin price at crossroads

Dogecoin price has dropped roughly 32% since May 20. The crash on May 19 seems to have taken a massive toll on altcoins, which have plummeted between 50% and 70%, undoing almost all of the gains accrued over the past year.

After the recent downfall, DOGE is currently hovering above a support area that stretches from $0.224 to $0.289. This demand zone is a perfect setup for the buyers to make a comeback. A potential spike in buying pressure that causes Dogecoin price to bounce from the aforementioned floor might trigger a 37% upswing to $0.40.

If the bullish momentum persists after hitting this point, investors could see the meme-themed cryptocurrency rally another 21% to tag the lower boundary of the supply area ranging from $0.481 to $0.515.

DOGE/USDT 12-hour chart

DOGE/USDT 12-hour chart

The upswing narrative detailed above depends on the assumption that the buyers manage to pull their act together and bounce from the demand zone, extending from $0.224 to $0.289. If the bulls fall short or fail to produce enough momentum to trigger an upswing, a sell-off will likely ensue.

While a breakdown of the $0.224 level will extinguish the bulls’ hope of a rally, a decisive 12-hour candlestick below the support floor at $0.212 will invalidate the bullish thesis.

In such a case, market participants could see Dogecoin price fall 25% to tag the first meaningful demand level at $0.159, a breakdown of which will result in a brutal crash to the support area ranging from $0.106 to $0.145, formed during mid-April.


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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.

More Bitcoin News

Ripple is now only 3% away from becoming a bigger entity than Binance Coin

Ripple is now only 3% away from becoming a bigger entity than Binance Coin

Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.

More Ripple News

Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.

More Ethereum News

BTC headstrong as Spot ETF talks reach technical stage

BTC headstrong as Spot ETF talks reach technical stage

Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice

Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice

Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.

Read full analysis

BTC

ETH

XRP