Dogecoin Price Prediction: $3 million shorts liquidated as DOGE suffers rejection from crucial supply barrier
- Dogecoin price has been in a steady uptrend, boasting almost 30% in gains since the bull market started on October 18.
- Despite prospects for more gains, $0.078 seems impenetrable for DOGE, triggering the second rejection in almost two weeks.
- The leading meme coin could extend below the $0.067 support level, this time losing a critical pivot as momentum dwindles.
- Invalidation of the bearish thesis will occur if the cryptocurrency breaks and closes above $0.078, confirming the continuation of the intermediate trend.
Dogecoin (DOGE) price has recorded a commendable rally beginning in mid-October, following the broader market as the cryptocurrency scene turned green. After reclaiming the mid-August highs, the leading meme coin by market capitalization now remains shy of a critical barrier, with its next move now hanging in the balance.
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Dogecoin price eyes 20% gains, but this level will not let it
Dogecoin (DOGE) price is up almost 30% since the crypto market turned bullish, recording a sustained uptrend before a consolidation phase. Now an uptrend is on course again. Nevertheless, the cryptocurrency faces a supply barrier extending from $0.076 to $0.080. This region sent the altcoin down almost 7%, liquidating up to $2.96 million worth of long positions.
DOGE liquidations
The supply zone is an order block that acts as a resistance level owing to the fact that it is populated by sellers. This means an asset’s price is bound to correct once it approaches this zone unless buyer momentum overpowers selling pressure.
If seller momentum from the bears overpowers buying pressure from the bulls, Dogecoin price could extend the losses, potentially going as low as the $0.067 support. In a worse case, the slump could extend for the meme coin to revisit the $0.060 psychological level or even test the support floor at $0.056. Such a move would denote a 20% slip from current levels.
DOGE/USDT 1-day chart
On the flip side, if buying pressure increases, Dogecoin price may yet shatter this order block, confirming the continuation of the intermediate trend by closing above its midline of $0.078. This will have invalidated the bearish thesis.
In a highly bullish case, the gains could extend to test the $0.081 resistance level, which if flipped could set the tone for a stretch to the $0.090 psychological level. Such a move would constitute a 20% climb above current levels.
The Awesome Oscillator (AO) indicator is in positive territory with green histogram bars to show bulls are leading the market. The position of the Relative Strength Index (RSI) is also motivating, holding just below 70 to give bulls time to gather strength after exhaustion since DOGE was recently overbought.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
