• Dogecoin price has successfully bounced off the $0.397 to $0.451 demand barrier, hinting at an incipient upswing.
  • A continuation of this momentum could push DOGE to $0.697 and $0.740.
  • Breakdown of the support level at $0.371 will invalidate the bullish thesis.

Dogecoin price is showing a clean bounce off a critical support area, indicating a resurgence of buyers. The upswing could propel the meme-themed cryptocurrency toward its range high.

Dogecoin price prepares for a blastoff

On the 4-hour chart, Dogecoin price has tapped into the liquidity available at the demand zone, extending from $0.397 to $0.451. As a result, DOGE has rallied nearly 20% to where it is trading at the time of writing, $0.498.

Dogecoin price could retest the aforementioned support area before proceeding to surge toward the 50% Fibonacci retracement level at $0.607, which is the first area of interest.

Following this, the meme coin could climb 15% to tag the $0.67 level, the range high.

If the bullish momentum persists after hitting this level, investors can expect Dogecoin price to rally to its all-time high at $0.739.

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

Supporting this bullish scenario is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows a stable support barrier at $0.497. Here roughly, 137,000 addresses previously purchased 14.3 billion DOGE. Therefore, these investors might add more to their holdings if the price dips lower and dampen the selling pressure.

Moreover, the resistance levels present ahead for Dogecoin price is relatively small. Surpassing $0.561, where 60,000 addresses that bought 5.2 billion DOGE are underwater, will provide the bulls a safe passage to the abovementioned levels.

DOGE IOMAP chart

DOGE IOMAP chart

While things seem to be looking up for Dogecoin price, investors should be cautious during the next dip into the demand zone mentioned above. A build of selling pressure that leads to a breakdown of $0.397 will signal a developing bearish outlook.

A decisive 4-hour candlestick close below $0.371 will invalidate the bullish thesis and kickstart a downtrend to $0.349. 


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

Recommended content


Recommended Content

Editors’ Picks

Bitcoin may be set for a price rebound amid alleged Trump's plan to speak at Bitcoin convention

Bitcoin may be set for a price rebound amid alleged Trump's plan to speak at Bitcoin convention

Bitcoin's price dropped below the $60K level briefly on Monday following news of defunct exchange Mt Gox beginning to pay its creditors in July. However, Santiment data reveals that the recent spike in social volume of the phrase "bottom" could signal a potential price rebound for Bitcoin based on historical trends.

More Bitcoin News

Solana down 15% in past seven days amid claims of alleged SOL investigation

Solana down 15% in past seven days amid claims of alleged SOL investigation

Solana holders and crypto analysts on X slammed influencer Crypto Bitlord behind the X handle @crypto_bitlord7 for his hot take on Solana and an alleged investigation. The analyst said that the alleged investigation has been brewing for “some weeks now,” and the crypto community on X heavily critiqued the influencer.

More Solana News

Ethereum whales increase their holdings following recent price decline

Ethereum whales increase their holdings following recent price decline

Ethereum's price (ETH) is down nearly 6% on Monday after Mt. Gox announced it would begin repaying creditors their Bitcoin and Bitcoin Cash. However, ETH whales have pounced on the price decline as an opportunity to purchase ETH before the arrival of spot Ethereum ETFs.

More Ethereum News

SHIB whale sells amid controversy surrounding WATER meme coin and singer Jason Derulo

SHIB whale sells amid controversy surrounding WATER meme coin and singer Jason Derulo

SHIB whales could be selling as the Dogecoin competitor has not seen sustained price growth in the past three months. WATER token might be facing selling pressure from increased insider activity. Jason Derulo accused of promoting crypto pump-and-dump scams by analyst.

More Shiba News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. 

Read full analysis

BTC

ETH

XRP