Dogecoin price provides sidelined buyers another opportunity before a 50% rally

Dogecoin price undid its gains seen between September 21 and 24 as it came tumbling down, following the footsteps of Bitcoin price. This downtrend has provided sidelined buyers a chance to accumulate before the inevitable explosion of bullish momentum that triggers an exponential rally. 

Dogecoin price back to the pavilion

Dogecoin price rallied 22% between September 21 and 24, which allowed it set up a swing high at $0.0683. However, the momentum waned and the market conditions deteriorated, triggering a sell-off that undid this gain, pushing it back between the $0.0587 to $0.0650 barriers. 

From scalpers’ perspective, the recent sell-off is a good opportunity to long the support and book profits at the resistance level. In total, this move could constitute a 12% gain. Additionally, if Bitcoin price is done crashing, the current level is a good place to enter a swing-long position. 

From a swing perspective, Dogecoin price has the chance to break the multi-year declining trend line and sweep the equal highs at $0.0890. This run-up would constitute a 51% gain and is likely where the upside could be capped for DOGE.

DOGE/USDT 1-day chart

While things are looking up for Dogecoin price, a failure to sustain the $0.0587 support level will indicate weakness among buyers and opens up the chance for sellers to takeover. If DOGE produces a daily candlestick close below the $0.0491 to $0.0587 demand zone, it will invalidate the bullish thesis and potentially trigger a sell-off to $0.0471.