|

Dogecoin price is next in line to explode after XRP

  • Dogecoin price has produced its first higher low after a long downtrend, hinting at a reversal.
  • Investors should now expect DOGE to ricochet between the $0.0587 and $0.0650 barriers.
  • A daily candlestick close below $0.0491 will invalidate the bullish theiss for the meme coin.

Dogecoin price shows a strong affinity to recover losses as it digs itself out of a stable demand zone on a wave of buying pressure. With Bitcoin resolving its downside liquidity, the big crypto ought to help DOGE move higher in tandem.

Dogecoin price to make holders happy

Dogecoin price crashed 13% between September 11 and September 22 after getting rejected by the $0.0650 hurdle. This move pushed DOGE below the $0.0587 support level, where it currently hovers.

Between September 19 and 22, however, DOGE regrouped and formed a double bottom that has pushed it up by 5%. As Dogecoin price grapples with the $0.0587 hurdle again, all eyes are on a potential recovery.

If DOGE can flip the blockade at $0.0587 into a support floor, it could trigger an 11% run-up to the next significant resistance level at $0.065. As long as the meme coin stays between these barriers, investors can trade the oscillations, going long the support and short the resistance levels.

In a more bullish scenario, if Dogecoin price can overcome the long-standing declining trend line, it could attempt a rally higher to $0.0890. Since equal highs are formed here, market makers will likely aid DOGE with a back draught, pushing it higher to sweep this level and collect liquidity.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

While things are looking up for Dogecoin price, a failure to push past the $0.0587 hurdle will indicate underlying weakness. If DOGE produces a daily candlestick close below the demand zone’s lower limit at $0.0491, it will invalidate the bullish thesis altogether.

This development could see Dogecoin price move to $0.0471 to regroup and give the recovery rally another go.

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

Ripple and Stellar outlook: XRP rally cools, XLM heads toward a make-or-break support

Ripple and Stellar trade under pressure after losing over 2% and 3% so far this week. XRP and XLM are both nearing their crucial support zones, which could determine the next directional move. Meanwhile, mixed derivatives and on-chain data suggest upside potential remains limited for both altcoins. CryptoQuant’s summary data shows cautious signs for both altcoins.

Crypto Overview: Bitcoin dips below $78,000 – NEAR, ZEC sustain gains

Bitcoin trades below $78,000 maintaining a near-term corrective tone amid hawkish macroeconomic factors. US bond market shrugs off the US Treasury's increase in buyback operations to $6 billion in long-term debt as yields continue to rise, signaling an insufficient step amid the ongoing war with Iran.

Bitcoin outperforms global assets as $83K-$86K resistance zone continues to weigh on rally

Bitcoin has continued to recover from its mid-year weakness, outperforming major traditional assets over the past month, amid strong resistance around the $83,000 to $86,000 range. BTC gained 23% over the past 21 trading sessions, while the S&P 500 and Nasdaq 100 were broadly flat and the Euro Stoxx 50 declined, according to a Glassnode report published Wednesday.

Ethereum Price Forecast: ETH holds near $2,500 amid derivatives weakness
Ethereum (ETH) holds steady near $2,500 on Wednesday amid weakness in derivatives and mild buying dominance in spot markets. Since the short squeeze that expanded ETH's rally toward $2,500 in late August, meaningful leverage has yet to return to support the uptrend.
Bitcoin: Gearing up for a sharp move
Bitcoin (BTC) is trading around $81,000 on Friday, up over 4% so far this week, and awaits a key catalyst that could determine its next directional move. Strong institutional demand is supporting the bullish price action, with spot BTC Exchange Traded Funds (ETFs) on track to record a third straight week of inflows.