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.

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

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

Share: Cryptos feed

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.