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Dogecoin price remains conflicted as DOGE tries to establish directional bias

  • Dogecoin price is stuck between $0.182 and $0.160 barriers, as it decides which hurdle to breach.
  • A 12% correction seems plausible after rejection at the $0.182 resistance level before any significant upside pressure is noticeable.
  • A lower low below $0.151 will invalidate the bullish thesis for DOGE.

Dogecoin price lacks the will in establishing any bias which can be seen in its price action over the past two weeks. DOGE is likely to retest the immediate support level if it fails to slice through the overhead barrier.

Dogecoin price lacks momentum

Dogecoin price received a gift from Elon Musk on December 14, which allowed it to rally by roughly 42% in a day. This run-up prevented DOGE from suffering a catastrophic drop, but the bulls failed to sustain the massive run-up. 

Since then, DOGE has retraced its steps and is currently trading between the $0.182 and $0.160 barriers, suggesting a lack of momentum. Although the meme coin might try to slice through the $0.182 resistance level, a failure will likely trigger a 12% correction to $0.160. 

As mentioned, this level is crucial and will determine the fate of DOGE in the near future. A resurgence of buying pressure around this level could trigger a brief 13% ascent to $0.182. If the buyers decide to step on the throttle, DOGE could shatter $0.182 and make a run for the $0.211 level.

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

The bullish scenario after the re-test of $0.160 is based on optimism and assumptions. A sideways movement is likely around $0.160, but a breakdown will indicate that a bearish fate is near.

If the Dogecoin price produces a four-hour candlestick close below $0.151, it will create a lower low, invalidating the bullish thesis. In this situation, Dogecoin price could slide to retest the $0.12 support level.

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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