|

Dogecoin price faces selling pressure, but DOGE bulls hope for a breakout rally

  • Dogecoin price faces selling pressure as it approaches the $0.0814 critical hurdle.
  • A decisive weekly candlestick close above this barrier could make or break DOGE bulls.
  • A successful flip could open the path for the meme coin to rally 17% to $0.0814.

Dogecoin (DOGE) price has broken free from its multi-month declining trend line that has defined the dominant bearish trend for nearly a year. The breakout, while pivotal, needs to clear one more critical hurdle before DOGE can take off. 

Read more: Dogecoin Price Forecast: DOGE hints at 50% rally as sentiment improves in first-ever Doge Day

Dogecoin price edges closer to breakout 

Dogecoin (DOGE) price has produced five lower highs and lower lows since October 31, 2022. Connecting the swing highs using a trend line reveals a declining resistance level. On October 23, DOGE produced a weekly candlestick close above this barrier, signaling a breakout. 

This development is key for Dogecoin price as it hints at a potential trend reversal. But, a key hurdle sits at $0.0707, which will decide if DOGE consolidates and kickstarts an uptrend. A weekly candlestick close above this barrier will trigger a 17% rally to $0.0814. 

Supporting this uptrend is the weekly Relative Strength Index (RSI), which has recently flipped above the 50 mean levels, suggesting an uptick in bullish momentum. Clearing this barrier will allow Dogecoin price to tag the $0.106 barrier. This move would constitute a 51% gain. 

DOGE/USDT 1-week chart

DOGE/USDT 1-week chart

On the other hand, if Dogecoin price gets rejected at $0.0707, it could threaten a steep correction. For a bullish thesis to face invalidation, DOGE needs to produce a weekly candlestick close below $0.0573, which would produce a lower low and signal a continuation of the downtrend. In such a case, Dogecoin price could slip 16% and tag the $0.0495 support level. 

Also read: Dogecoin aims for July highs with potential 10% gain amid meme coin revival

Author

Akash Girimath

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.

More from Akash Girimath
Share:

Editor's Picks

XRP defends $1.30 support as Ripple partners with Arf to bring RLUSD settlement liquidity to XRPL

Ripple holds near recently confirmed support at $1.30 on Friday, as bulls eye a short-term recovery toward $1.40. The remittance token’s upside remains capped by structural levels, suggesting recovery would depend on whether buyers can sustain momentum.

Bitcoin Weekly Forecast: BTC extends pullback as ETF inflows clash with risk-off sentiment

Bitcoin remains under pressure, trading around $81,800 on Friday, recording modest losses so far this week. Despite a mild pullback, institutional demand showed signs of a comeback with spot ETFs recording $442.67 million in net inflows through Thursday.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

Pi Network holds modest gains as mixed technicals curb upside

Pi Network (PI) price is up 2% on Friday, showing signs of recovery while the broader cryptocurrency market faces near-term weakness. The crypto market sentiment eases to neutral from bullish amid rising long liquidations.

Bitcoin extends pullback as ETF inflows clash with risk-off sentiment

Bitcoin remains under pressure, trading around $81,800 on Friday, recording modest losses so far this week. Despite a mild pullback, institutional demand showed signs of a comeback with spot Exchange Traded Funds recording $442.67 million in net inflows through Thursday.