- Dogecoin price has been in a downtrend for more than 300 days, currently sitting 85% below its all-time high.
- The historical trend has provided excellent support twice in the past and sits within arms reach.
- A third retouch of the historical trend could encourage investors to buy DOGE.
Dogecoin price has always produced incredible returns when retesting a historical trend that developed since early 2020. A third retest of the trendline has not yet occurred, but DOGE is currently floating above it.
Dogecoin price to drop one more time before the next bull run
On July 5, 2020, Dogecoin price skyrocketed by 150% in only two days following the first test of the historical trend. The second retest occurred on January 27, 2021, which saw even greater returns yielding a whopping 10,000% increase in DOGE price within 100 days.
It is reasonable to consider that the third retest of a trend line can provide the most confident entry for investors. Under such an assumption, long-term bulls could wait patiently for Dogecoin price to fall another 25-30% to test the demand zone sitting between $0.08 and $0.09.
Dogecoin Daily Chart
Investors should keep in mind that Dogecoin price is still printing lower lows on the daily chart. There is still no evidence to suggest any bullish behavior in the short-term future. With that being said, being an early buyer is not advised.
If the bears cannot successfully push Dogecoin price into last year's resistance at $0.09, then the end of April could be a very speculative time for the memecoin. The current price will inevitably collide with the historical trend.
Invalidation of this bullish thesis will only occur if DOGE price fails to find support from the historical trend line by April. The historical trend line can potentially transform into resistance, sending prices towards $0.07 and even $0.05.
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.