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Dogecoin price sees bulls preparing for a 125% appreciation

  • Dogecoin price is continuing its squeeze in price action. 
  • DOGE price has been very well supported the past few weeks has seen buy-side volume pick up.
  • Expect a break to the upside with bears backing off and opening the road for a 125% bull run. 

Dogecoin (DOGE) price has been in an uptrend since April but has seen some whipsaw price action along the way. Nonetheless, the lower end of the DOGE price reaction has been supported continuously by bulls around the green ascending trend line.  As the price squeeze sees lower highs and higher lows, expect a bullish breakout towards $0.53.

Dogecoin price stills see elevated buy-side activity

Dogecoin price has seen buy-side volume picking up in speed the past few weeks since September. With these opportunities, bulls can add more weight to their earlier or new long positions. The green ascending trend line holds steady and does not look to give way anytime soon. 

DOGE price sees the red descending trend line from the topside looking a bit feeble with just one retest two weeks ago. As a third test is missing, the strength of the descending top line looks questionable. DOGE price would certainly break above as the current level of mounted buy-volume is just too big for shorters in Dogecoin to match.

DOGE/USD weekly chart

DOGE/USD weekly chart

DOGE price will quickly hit the first resistance at $0.35, with the previous high from mid-August and the monthly R1 resistance level. When Dogecoin price could get some tailwinds to back the move, expect a further acceleration of the breakout and DOGE price could rally quite quickly to $0.53 with no bears present for any counterweight. 

If the backbone of the current rally in DOGE price would not hold, expect the level at $0.20 to hold firm. These past few weeks, this level has been present as the S1 support level and did not see any tests yet. A break below the trend line would see bulls picking up Dogecoin price as the alt-currency is still present in the media and gains some tailwinds from this.



 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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