|

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:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

BNB Price Forecast: BNB slips below $855 as bearish on-chain signals and momentum indicators turn negative

BNB, formerly known as Binance Coin, continues to trade down around $855 at the time of writing on Tuesday, after a slight decline the previous day. Bearish sentiment further strengthens as BNB’s on-chain and derivatives data show rising retail activity.

Top Crypto Losers: Aster, Midnight, and Ethena extend losses as selling pressure mounts

Aster, Midnight, and Ethena are the altcoins with the most losses over the last 24 hours, as the broader cryptocurrency market weakens amid Bitcoin dropping below $86,000. ASTER, NIGHT, and ENA risk further losses as selling pressure mounts and risk-off sentiment spreads across the crypto market.

Ethereum Price Forecast: BitMine acquires 102,259 ETH as price plunges 5%

Ethereum (ETH) treasury company BitMine Immersion scaled up its digital asset stash last week after acquiring 102,259 ETH since its last update. The purchase has increased the company's holdings to 3.96 million ETH, worth about $11.82 billion at the time of publication.

Strategy scoops about $1 billion in Bitcoin for second consecutive week

Bitcoin (BTC) treasury and financial intelligence firm Strategy expanded its holdings following another round of weekly accumulation.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.