Dogecoin upside is limited to $0.20 as DOGE continues to coil up

Dogecoin price is stuck producing lower highs and equal lows between two crucial barriers. As this price action progress, DOGE becomes increasingly coiled up. A breakout from this consolidation is likely to pop, leading to a quick run-up.

Dogecoin price to launch soon

Dogecoin price has set four lower highs and three equal lows since November 2021. A trend line drawn rough along the candlesticks of these swing highs shows a declining resistance barrier.

As DOGE gets squeezed between the aforementioned trend line and the $0.127 support level, it signals a breakout will be explosive. Dogecoin price is currently bouncing off the horizontal barrier and will make a 15% run for the declining trend line.

A decisive close above this hurdle will open the path for DOGE to retest the weekly resistance barrier at $0.163. This move would represent a 23% ascent from the current position - $0.132. There is a good chance for DOGE to form a local top around $0.163, but a resurgence of buying pressure combined with market makers’ intent to collect liquidity might propel the meme coin to retest the $0.194 hurdle and sweep above it.

This extension would bring the total gain from 23% to 47% for the Dogecoin price.

DOGE/USDT 1-day chart

While things are looking exceptionally optimistic for Dogecoin price, a failure to move past the declining trend line will indicate a weakness on buyers’ part. However, if DOGE produces a daily candlestick close below $0.127, it will create a lower low and invalidate the bullish thesis.

In this scenario, Dogecoin price could crash 41% and revisit the $0.0746 support level.