- Dogecoin price has created a bullish cup and handle pattern
- DOGE price has broken out of the seller's territory on the Relative Strength Index
- A close below $0.115 will invalidate the bullish thesis
Dogecoin price has emerged with new fuel as the bulls have established bullish price action on the 8-hr chart. DOGE has the potential for up to a 14% rally with a precise invalidation level.
Dogecoin price is preparing for take-off
Dogecoin price has had some significant strengthening from the bulls this weekend, as the price is currently fluctuating at $0.12. Last week's thesis mentioned that a close above the .5 Fibonacci level would be the first indication of a bullish reversal for the notorious meme coin. Saturday turned out to be favorable for the bulls as Dogecoin price printed a bullish engulfing past the .5 fib level with a final close of $0.124
Dogecoin price has displayed more bullish confluence on the 8-hour chart as the Relative Strength Index has slightly broken out past the 65 levels. Bearish traders on smaller time frames might be in jeopardy as the first breakout on the RSI is usually followed by equal or larger rallies. It is also worth noting that this weekend's market behavior has established a cup and handle pattern on Dogecoin price. The cup and handle pattern signals the potential for a 14% rally is imminent.
DOGE/USDT 8-Hr Chart
Still, bullish traders should be warned that the bears still have a shot to retake control as many large investors are still sidelined, waiting to buy a touch of the historical trend. A close below $0.115 on the 8-hour chart will have too much weight for the bullish cup and handle to support. If this were to occur, Dogecoin price would likely fall sub-double-digits into the $.09 territory, 20% below the current price.
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