• Dogecoin price filled a market vacuum at $0.0621 before attempting to collect the liquidity below the equal lows at $0.0585.
  • A sweep of $0.0585 will be akey requisite to catalyzing a 10% rebalancing move to between $0.0645 and $0.0649.
  • A flip of the $0.0558 level into a resistance barrier will invalidate the bullish outlook for DOGE.

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

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.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

FTX’s founder claimed that he was unaware of Alameda’s position, which led to the subsequent collapse. Sam Bankman-Fried had earlier blamed FTX’s downfall on “messy accounting” that emanated during the Terra-Luna collapse.

More Cryptocurrencies news

Avalanche price remains submerged, but bulls can come out on top if this happens

Avalanche price remains submerged, but bulls can come out on top if this happens

Avalanche price may be setting up for one more decline targeting the halfway point of the 2020-2021 bull run. Despite this fact, the bulls are showing efforts to refute the bearish stronghold. The $14 price zone is crucial for defining the next directional rally.

More Avalanche news

Hedera Hashgraph (HBAR) Price Prediction: Countertrend bulls seem poised for more gains

Hedera Hashgraph (HBAR) Price Prediction: Countertrend bulls seem poised for more gains

Hedera Hashgraph price shows potential to rally a bit higher before the bears flex their power again. Based on the confounding technicals, HBAR could rise by 12%. Hedera Hashgraph price has rallied by 18% on the month.

More Hedera news

Why the Ethereum price could rally back to $1,375

Why the Ethereum price could rally back to $1,375

Ethereum price has investors watching closely as the recent recovery could be the start of a much larger move. As the bulls trot higher, subtle signs suggest the ETH price could continue to rally. A breach below $1,214 would make void ETH's bullish potential.

More Ethereum news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP