Dogecoin price searches for reliable support before DOGE bulls target 42% ascent

Dogecoin price could be ready for a 42% bounce toward $0.26 but not before DOGE discovers a reliable foothold. The meme-based token may see a buy opportunity at slightly lower prices before the bulls prepare for a major upswing.

Dogecoin price to find meaningful support

Dogecoin price has formed a parallel channel on the daily chart, suggesting that the token is range-bound. The toughest area of resistance appears to be at $0.26, indicating that the bulls may be planning a 42% upswing. 

Although the prevailing chart pattern suggests that there is more upside potential in Dogecoin price, the token may drop lower first to find meaningful support.

The first line of defense for Dogecoin price is at the 21-day Simple Moving Average (SMA) at $0.17, then at the lower boundary of the prevailing chart pattern at $0.15.

Should Dogecoin price manage to discover reliable support at the downside trend line of the governing technical pattern, DOGE bulls can expect a bounce to reverse the period of underperformance.

The first area of resistance is at the 23.6% Fibonacci retracement level at $0.18, then at the 50-day SMA at $0.20. Additional resistance will emerge at the 38.2% Fibonacci retracement level at $0.21.

DOGE/USDT daily chart

Dogecoin price may face a tougher obstacle at the 100-day SMA at $0.22, which coincides with the middle boundary of the prevailing chart pattern.

Another hurdle will emerge at the 50% retracement level at $0.23, coinciding with the 200-day SMA. The most challenging headwind for Dogecoin price is located at $0.26, where the 61.8% Fibonacci retracement level, intersects with the resistance line given by the Momentum Reversal Indicator (MRI).

If a spike in buy orders occurs, Dogecoin price may target higher levels, first at the 78.6% Fibonacci retracement level at $0.29, then at the upper boundary of the parallel channel at $0.32.