- Dogecoin price shows a string of higher highs and higher lows, suggesting an upswing is underway.
- DOGE needs to slice through $0.31 and $0.36 hurdles to rally 70% to $0.45.
- A breakdown of the $0.196 support floor will invalidate the bullish thesis.
Dogecoin price has been consolidating for nearly six months without a palpable upswing. While this price action is annoying, DOGE seems to be in a similar accumulation phase to Shiba Inu before breaking out.
Dogecoin price awaits explosive moves
Dogecoin price has been stuck under the 50% Fibonacci extension level at $0.45 for roughly six months. This consolidative price action for DOGE seems to be changing as buyers are ready to push the meme coin higher.
Since October, Dogecoin price has set up higher highs and higher lows, suggesting an uptrend. For this bullishness to continue, DOGE needs to slice through two barriers at $0.31 and $0.36. Flipping these levels into support floors will confirm a resurgence of buyers and propel Dogecoin price to $0.45, coinciding with the 50% Fibonacci retracement level. This ascent would constitute a 70% gain from the current position.
In a highly bullish case, investors can expect DOGE to flip the $0.45 ceiling into a launching platform, which could trigger a massive upswing to 2021 highs at $0.75.
DOGE/USDT 1-day chart
Regardless of the bullish outlook on the short-term, if the Dogecoin price fails to shatter $0.31 or $0.36, it will imply a weak buying pressure or an increased selling pressure. Either way, it could lead to a downswing toward the stable support level at $0.19.
If the Dogecoin price produces a lower low below this foothold, it will invalidate the bullish thesis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.