Dogecoin Price Prediction: A 20% rally before the next plummet occurs

Dogecoin's recent uptrend move has the potential to conquer another 20% of gains.
Still, the resistance near $0.08 may have been the catalyst for a much larger decline in the DOGE price.
Key levels have been identified for both the bullish and bearish scenarios.

Dogecoin price reconquers the $0.06 boundary and has the potential to climb into the mid $0.07 zone. Still, investors should be aware of a much larger bearish scenario underway.

Dogecoin price retaliates

Dogecoin price has rallied impulsively after falling beneath the $0.06 barrier during the first week of September. The impulsive countertrend wave consolidates above the 8-day exponential and 21-day simple moving averages, which is an optimistic signal for the world's favorite dog coin.

Dogecoin price currently auctions at $0.063. A Fibonacci Retracement tool surrounding the summer high at $0.089 and the September low at $0.05 shows the current impulsive wave as just a 23.6% retracement. Based on Elliot Wave and Fibonacci methods, the DOGE price could continue rallying towards the 61.8% retracement level at $0.075 in the coming days.

Such a move would result in a 20% increase from the current market value.

DOGE USDT 8-Hour Chart

Nonetheless, investors should remember that although the counter trend rally is good eye candy, the DOGE resistance near $0.089 was quite significant in terms of volume and price action. The DOGE price has not yet matched the bearish onslaught in terms of volume or candlestick sizes.

Thus, the overall downtrend thesis mentioned last month is still in play. A breach of the September low at $0.057 low could trigger a 20% decline, targeting the June 18 swing low at $0.049. Invalidation of the bearish thesis is a breach of the August high at $0.089. If the bulls can conquer this level, they could induce a favorable market environment targeting $0.21, resulting in a 250% increase from the current Dogecoin price.

In the following video, our analysts deep dive into Dogecoin's price action, analysing key market interest levels. - FXStreet Team

Share: Cryptos feed

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.

Join Telegram