- Dogecoin price created a new swing low at $0.162 after the recent 43% sell-off.
- DOGE has rallied 35% since this bottom and looks to continue this ascent by another 26%.
- A breakdown of the swing low at $0.162 will invalidate the bullish thesis.
Dogecoin price slid below the May 19 range low to create a new bottom as the entire cryptocurrency market underwent a sell-off. Although DOGE has rallied considerably since setting up the recent swing low, more gains seem to be on the horizon.
Dogecoin price to continue its bull rally
Dogecoin price crashed 43% from $0.290 to $0.165 between June 20 and June 22. This sell-off pushed below the previous range low at $0.194 to set up a new one at $0.165.
Despite this massive plummet, the cryptocurrency market, including DOGE, is recovering swiftly. However, the bulls need to slice through the immediate resistance level at $0.255 to tag $0.280.
A decisive 6-hour candlestick close above this barrier will signal the start of a new uptrend that could propel the meme coin to a new supply level at $0.343.
The upswing described above will either come after a minor retracement to $0.194 or continue to head higher and then retrace to $0.194. Therefore, investors need to exercise caution.
DOGE/USDT 6-hour chart
On the flip side, if Dogecoin price fails to climb above $0.255, it would signal weak bullish momentum. However, if DOGE slices through the support level at $0.194, it would indicate increased selling pressure.
If the bears continue to push through, leading to a breakdown of the swing low at $0.162, the bullish thesis will face invalidation. In that case, Dogecoin price could sell off another 27% to $0.119.
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