Dogecoin price primed for massive rebound after a retest of historical trend
- 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.
Author
FXStreet Team
FXStreet
