- Dogecoin price retests the POC at $0.066 of the volume profile for the last 100 days.
- A bounce that emerges after a sweep of the equal highs formed at $0.057 has a high chance of sustaining an explosive move.
- A daily candlestick close below the $0.048 level will invalidate the bullish thesis.
Dogecoin price is at crossroads and shows signs of a steady consolidation above a stable support level. However, there needs to be momentary pain before a long-term and explosive rally originates.
Dogecoin price makes precise plans
Dogecoin price triggered a 71% crash between April 25 and June 18, which was due to the aftereffects of the LUNA-UST debacle and the ripple effects that blew up the Three Arrows Capital. Regardless, DOGE managed to form a bottom and trigger a run-up.
The volume profile for this range shows that the highest volume traded level, aka Point of Control (POC) at $0.066, is currently being tagged by DOGE. While this barrier serves as a support level, a breakdown of this level is necessary to collect the sell-side liquidity resting below equal lows formed at $0.057.
Interestingly, the aforementioned level also coincides with the demand zone, extending from $0.057 to $0.048, making it a high-probability reversal area.
Therefore, this dip is the best opportunity for swing and position traders to buy or long DOGE at this level. The rally that emerges here is likely to shatter through the short-term resistance levels and retest the midpoint of the 71% crash at $0.110.
In total, this move would constitute a 90% upswing and is likely where the upside is capped for the Dogecoin price.
DOGE/USDT 1-day chart
On the other hand, if the Dogecoin price produces a daily candlestick close below the $0.048 level, it will create a lower low and will invalidate the bullish thesis. This development could see DOGE move down to $0.045 or $0.040 levels.
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.
Recommended Content
Editors’ Picks
Cardano network’s Charles Hoskinson warns traders against AI token scams ahead of Apple developer conference

Charles Hoskinson, the founder of Cardano, has warned the crypto trading community against scams. With market participants watching the upcoming Apple 2023 WWDC lined up for Monday, there is a rally in artificial intelligence-based (AI) tokens.
Terra LUNA Classic price on the rise as Montenegro court approves Do Kwon’s second bail request

Terra LUNA Classic price yielded double-digit gains overnight for holders. LUNC price rallied in response to the recent development in Do Kwon’s bail request. The next hearing in Kwon’s case is June 16.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September

Ripple has a 25% chance of winning its legal battle against the US Securities & Exchange Commission (SEC), according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory.
Why Solana price is primed for 30% rally

Solana price shows quite a few developments on the daily chart, all of which point to a bullish future for SOL holders. Investors can expect a quick run-up, which could develop into a medium-term uptrend if these optimistic conditions remain bullish.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.