Dogecoin price to provide positional traders a discount to buy DOGE before a 90% rally


  • 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

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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Is BTC sell-off over?

Bitcoin Weekly Forecast: Is BTC sell-off over?

Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs, which recorded outflows of more than $280 million this week. 

More Bitcoin News
Three reasons why Solana could see a double-digit decline

Three reasons why Solana could see a double-digit decline

Solana price appears to have found some support on Friday, recovering slightly from the sharp sell-off registered earlier this week. However, on-chain metrics and technical indicators show increasing chances of a further decline in prices, suggesting that the rebound could be short-lived.

More Solana News
Tron network revenue exceeds Bitcoin, Ethereum and Solana in Q3

Tron network revenue exceeds Bitcoin, Ethereum and Solana in Q3

 The Tron network (TRX) generated the highest revenue in the third quarter since its inception, outperforming leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

More Tron News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around $60,000

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around $60,000

Bitcoin is hovering around its key support level; a sustained close below this threshold could signal further declines. On the other hand, Ethereum and Ripple have closed below their critical support levels, indicating further downsides.

More Cryptocurrencies News
Bitcoin: Is BTC sell-off over?

Bitcoin: Is BTC sell-off over?

Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.

Read full analysis
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

BTC

ETH

XRP