Dogecoin price to rally 20% if DOGE can recover recent losses
- Dogecoin price has slipped past the 79% Fibonacci retracement level at $0.225, signaling a weak buying pressure.
- A quick recovery above this barrier could trigger a 20% upswing to $0.267.
- If DOGE fails to flip $0.225 into a support floor, a retest of $0.194 is likely.
Dogecoin price is at a make or break point in its downward cycle as it recently flipped a crucial support level into resistance. If DOGE bulls can quickly recover, investors can expect a run-up. Failing to do so might result in a steeper correction.
Dogecoin price at inflection point
Dogecoin price dropped below the 79% Fibonacci retracement level at $0.225 after consolidating above it for six days. This down move indicates that the buying pressure is weakening. While things are looking grim for DOGE, a potential spike in buying pressure that pushes DOGE to reconquer the $0.225 barrier will be a display of strength.
This move will likely trigger a 20% upswing that pushes pass the intermediate resistance levels to retest the 50% retracement level at $0.267.
In some cases, this climb could extend to $0.283, revealing a 25% gain.
DOGE/USDT 1-day chart
While the bullish narrative is contingent on the recovery above $0.225, a failure to do that might result in unwelcomed situations. For instance, the Dogecoin price could slide straight to the range low at $0.194. This 12% crash places DOGE on a critical level, a breakdown of which could result in a further bearish crash to $0.09.
Therefore, it is significantly important for Dogecoin price to stay above $0.225 for a bullish case and $0.194 to avoid a strong bearish outlook.
Author
Akash Girimath
FXStreet
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.
