Dogecoin Price Forecast: DOGE shows promise of a bounce amid worsening market conditions
- Dogecoin price stabilizes after a retest of the $0.0713 support level.
- A bounce off this barrier could trigger a quick 7% rally to $0.0784, but it could extend all the way to $0.0916.
- A decisive breakdown of the $0.0688 support level will invalidate the bullish thesis for DOGE.
Dogecoin price seems to be done with sliding lower as it approaches a stable barrier. The lack of bearish momentum mixed with a spike in buying pressure at a critical junction could be the sign that a DOGE reversal could be on its way.
Also read: Dogecoin overtakes Bitcoin in daily transactions as DRC-20 capitalizes on Ordinals hype
Dogecoin price needs to make a decision
Dogecoin price shed 26% after failing to push through the $0.0916 hurdle and formed a local bottom around the $0.0689 support level. As sidelined, buyers stepped in, the recovery rally kickstarted, pushing DOGE up by 7% so far.
As Dogecoin price trades at $0.0738, investors can expect a continuation of this trend over the weekend and into the next week. The short-term target is $0.0784, which is roughly 7% away from the current position. But in a highly bullish case, DOGE could extend all the way up to $0.0916.
If successful, this Dogecoin price move would constitute 25% gain for the DOGE holders.
DOGE/USDT 1-day chart
On the other hand, if the market outlook worsens, Dogecoin price could tank along with Bitcoin. If DOGE flips the $0.0689 support level into a resistance barrier, it will create a lower low and invalidate the bullish thesis.
This development could see Dogecoin price crash and tag the March 8 swing low at $0.0625.
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.
