Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin price underwent a tight consolidation between September 28 and 30, which eventually resulted in an explosive move up that collected the buy-stop liquidity resting above the September 27 swing high. This move quickly ran out of steam, however, and was followed by a reversal that knocked DOGE down to retest the aforementioned equal lows.

Dogecoin price delays its upswing

Dogecoin price action is a clear example of liquidity runs and imbalances. The 21% upswing between September 22 and 24 collected the buy-stop liquidity resting above the swing highs at $0.0650. This run-up also created a swing high at $0.0682, which signaled a reversal that allowed DOGE to shed roughly 11%.

As discussed in the previous article, the Dogecoin price has rebalanced the Fair Value Gap (FVG), extending from $0.0607 to $0.0618. This move came before sweeping the $0.0585 level for liquidity. 

Regardless, Dogecoin price rallied only 5% and undid these gains quickly and is currently lingering just above $0.0585. A sweep of this level seems plausible in the near future, which could then be followed up by a swift move higher.

In such a case, investors can expect DOGE to rebalance another imbalance, stretching from $0.0645 to $0.0649. From the current position, a move to a retest of the lower limit of this FVG would amount to a 10% gain and is likely where holders should book profits.

DOGE/USDT 4-hour chart

On the other hand, if the Dogecoin price produces a lower low below the September 19 swing low at $0.0558, it would indicate a lack of buying pressure. This development would cause a shift in market structure favoring bears and invalidate the bullish thesis for DOGE.

This development could knock Dogecoin price to $0.0530.