- Dogecoin price is struggling to slice through a support area extending from $0.213 to $0.230.
- A retracement to $0.179 or $0.160 will form a triple-bottom setup and potentially trigger a run-up to $0.268.
- If DOGE produces a lower low below $0.160, it will invalidate the bullish thesis.
Dogecoin price is retracing after getting rejected at a stiff resistance level. While this correction could extend lower, it will be in search of a launching pad that will propel DOGE higher.
Dogecoin price to form bottom reversal pattern
Dogecoin price dropped 38% from September 7 to where it currently stands, $0.201. This downtrend sliced through the demand zone ranging from $0.213 to $0.230. Attempts to reclaim this failed as buying pressure fell short.
Now DOGE is hovering above the $0.193 support floor in hopes of taking another jab at the resistance barrier mentioned above. A potential spike in buying pressure that clears this hurdle could potentially kick-start an uptrend.
Dogecoin price will first encounter the resistance levels at $0.256 and $0.268. This ascent from $0.179 to $0.268 would constitute a 50% ascent. While overcoming these blockades will not be easy, doing so will allow the meme coin to scale higher and tag $0.314.
DOGE/USDT 1-day chart
Although a retracement to the $0.179 or $0.160 support floors is expected, investors should be mindful of the selling pressure that knocks Dogecoin’s price to produce a swing low below $0.160. Such a development will invalidate the bullish thesis as it would be a lower low.
However, there is a chance this swing low could be manipulation from the market makers to collect the sell stop liquidity resting below $0.160. In which case, a new bull rally could kick-start, pushing DOGE to resistance levels like $0.213, $0.23 or $0.268.
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.