- Dogecoin price hovers above two compressing moving averages.
- DOGE price shows support on the Relative Strength Index after performing a break of structure rally.
- Invalidation of the uptrend is a breach below the swing low at $0.049.
Dogecoin price shows bullish promise. Defining the best risk-to-reward entry for upside gains remains the challenge.
Dogecoin price is bullish with contingencies
Dogecoin price rallied 30% since the July 13 swing low at $0.0574. The notorious dog coin has retraced 50% of the way and now trades just under the $0.07 barrier. Early bulls have likely entered the market with appreciation to the recent market structure break near the $0.0725 zone. Now the question is, are the early bulls right? Or will they have to endure one more smart money sell-off before the anticipated bull run takes place?
Dogecoin price currently trades at $0.069, hovering just above the compressing 8- & 21-day simple moving averages (SMAs). Scalpers may be eyeing this $0.069 level as a possible entry zone in hopes that the SMAs can produce a bullish cross. The Relative Strength Index breached extremely overbought territories and now finds support back within a healthy uptrend mid-zone.
DOGE/USDT 8-Hour Chart
When combined, it does seem like the Dogecoin price is setting up for a decisive move. Short-term targets are $0.08 and $0.125, while the technicals suggest extended FOMO targets could reach as high as $0.25 in the coming weeks.
Invalidation of the uptrend is a breach below the swing low at $0.049. However, placing an early entry is a bit risky as the DOGE price could show one more 25% decline into the $0.052 zone. Waiting for a breakout past $0.0788 is the safer bet to qualify for an uptrend scenario. Investors should keep in mind that a breach of the invalidation level could trigger a sellers' frenzy with targets in the $0.02 zone, resulting in over a 60% decline from the current DOGE price.
In the following video, our analysts deep dive into the price action of DOGE, analyzing key levels of inerest in the market. -FXStreet Team
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