• Dogecoin price coils up under a declining trend line, suggesting a dearth of volatility.
  • A breakout from this barrier is likely to propel DOGE to $0.163, constituting a 23% run-up.
  • A daily candlestick close below $0.127 will invalidate the bullish thesis for DOGE.

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

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.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition

Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition

Renowned chartist trader Peter Brandt has identified one condition that could confirm a bullish reversal for Bitcoin. Brandt believes Bitcoin could now recover from its 70% drawdown in the worst bear market for the leading crypto of all time. 

More Bitcoin News

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

Brad Garlinghouse, CEO of Ripple, has affirmed a move outside the US if the payment giant loses the SEC vs. Ripple lawsuit.

More Ripple News

Where traders can buy Avalanche's AVAX price before the next leg up

Where traders can buy Avalanche's AVAX price before the next leg up

AVAX price has been on a roll since it bottomed on June 19. Since then, the altcoin has managed to provide traders with massive gains. The recent retracement suggests that Avalanche bulls are planning their next leg-up.

More Avalanche News

If Dogecoin price does this, a 30% rally is a no-brainer

If Dogecoin price does this, a 30% rally is a no-brainer

Dogecoin price is at a crucial point in its journey, which could either trigger a minor swing or a pullback that will prepare it for another massive leg-up. Therefore, investors need to pay close attention to DOGE and its upcoming corrections.

More Dogecoin News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP