• 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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Chainlink price to provide buy opportunity before LINK surges 35%

Chainlink price is preparing for a move lower as its bullish momentum begins to wane. This downtrend, albeit bearish in the short term, will provide investors with an opportunity to accumulate LINK at a discount. It will also allow them to position themselves for a quick run-up to set higher highs.

More Chainlink news

Why MATIC price could soon see a meteoric rise toward the round level of $4

MATIC price appears to be ready for a major upswing toward $3.84 as Polygon presented a bullish chart pattern on the daily chart. The governing technical pattern suggests that the layer-2 token is preparing for a 62% climb. MATIC price has formed an ascending triangle on the daily chart.

More Polygon news

EOS community votes to fire and cut off payments to Block.one

The EOS community has decided to halt ongoing payments to the company behind the blockchain’s network, Block.one. Through a super-majority consensus, the community claims that the firm is no longer acting in the network’s best interests.

More EOS news

Uniswap price recovers slowly as UNI eyes a 30% upswing

Uniswap price has been on a slow uptrend for quite some time. This move comes as the crypto markets are starting to recover from the brutal sell-off witnessed on December 4. The recent run-up shows that UNI is ready for a quick retracement ...

More UniSwab news

The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

Read full analysis