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Dogecoin Price Prediction: Is this the start of a bull run for DOGE?

  • Dogecoin price seems to have formed a base at $0.0574, which is the launching pad.
  • The 7% rally seen so far could extend to 20% as DOGE tries to retest the $0.0729 hurdle.
  • A daily candlestick close below $0.0574 without a quick recovery will invalidate the bullish thesis.

Dogecoin price has been consolidating above the equal lows for quite some time. The recent recovery in Bitcoin price has triggered a recovery for all altcoins, including DOGE. Therefore, investors need to pay close attention to the dog-themed crypto, which looks primed for a quick run-up.

Dogecoin price ready to make a move

Dogecoin price crashed 35% between August 17 and September 7 after rejection from the multi-year declining trend line at roughly $0.0889. This downtrend formed a base at $0.0574, which formed equal lows.

Although DOGE was supposed to collect the sell-stop liquidity below these swing lows, it did not. Instead, Dogecoin price formed a base here after a brief consolidation and triggered a 7% run-up so far.

This move is likely to extend as the big crypto moves north. Hence, investors can expect a minimum of 20% upswing to $0.0729, coinciding with the multi-year declining trend line mentioned above. 

Interestingly, a breakout above this confluence will signal a buying opportunity since it would be the first time Dogecoin price has achieved this in roughly 500 days. Hence, this development could trigger a massive run-up for DOGE and kick-start the bull run.

However, until the said trend line is breached, DOGE’s upside is capped at $0.0729.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

On the other hand, if Dogecoin price fails to produce a higher high, it will signal a weakness in buyers. In such a case, investors should provide DOGE the free to collect the sell-stop liquidity resting below $0.0574.

If Dogecoin price produces a daily candlestick close below $0.0574 without a quick recovery will invalidate the bullish thesis.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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