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Dogecoin price to provide a buying opportunity before exploding 35%

  • Dogecoin price saw rejection at the multi-year trend line but hints at a retest of $0.082.
  • A bounce off the $0.074 to $0.082 demand zone is the best place to buy for the next leg-up.
  • A daily candlestick close below $0.074 will invalidate the bullish thesis for DOGE.

Dogecoin price sees a slow decline in bullish momentum as a major hurdle puts an end to its explosive move. A pullback is emerging for DOGE and is likely an opportunity that will allow bulls to recuperate and prepare for the next rally.

Dogecoin price to have another go at an uptrend

Dogecoin price flipped the $0.082 support level on August 16 as it rallied 12%. This move comes after spending nearly two and a half months below this resistance level.

The newfound bullish momentum has caused DOGE to create a demand zone, extending from $0.074 to $0.082. However, the uptrend faced rejection at the multi-year declining trend line serving as a resistance level.

As a result, DOGE is likely to retrace to the $0.082 support level and get squeezed between the horizontal support and declining resistance levels. An explosion from this range tightening is likely to result in an upward move that will retest the $0.093 hurdle after a 13% rally.

An extension of this explosive rally will push Dogecoin price to revisit the $0.109 hurdle, which is likely where a local top will form. Therefore, interested investors should watch for a bullish reaction off the aforementioned demand zone.

As long as DOGE remains above this area, a 13% to 33% upswing is likely for the meme coin.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

While things are looking up for Dogecoin price, a breakdown of the $0.074 to $0.082 demand zone will invalidate the support structure and signal an inflow of bearish momentum.

This development will also invalidate the bullish thesis and trigger a correction to $0.072 from a conservative outlook and $0.062 if the selling pressure fails to subside. 

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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