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For 20% gains, should you be a Dogecoin buyer at this level?

  • Dogecoin price has been on a steady downtrend since October 2022.
  • The recent recovery above a key resistance forecasts DOGE could trigger a 23% ascent.
  • Invalidation of the bullish thesis will occur on a decisive flip of the $0.0707 support floor into a hurdle.

Dogecoin price has shed non-stop since October 2022. Now, this downtrend has coiled enough for DOGE to consider a breakout. The move, if successful, could kick-start a rally to immediate hurdles.

Dogecoin price fuels up 

Dogecoin price set up four distinctive swing lows since creating a local top at $0.159 in October 2022. The downtrend has ranged between the buying climax at $0.0946 and the selling climax at $0.707. 

Now, that DOGE has recovered above the selling climax at $0.0707, it has the intermediate resistance level at $0.0813 to overcome, to kick-start its ascent. A successful breakout could trigger a 23% rally to tag the buying climax at $0.0946. 

Adding credence to this bullish outlook are the Relative Strength Index (RSI) and the Awesome Oscillator (AO) momentum indicators, both of which are revealing a strong surge in momentum favoring the bulls. 

Moreover, the RSI has flipped above the midpoint and the AO has not only recovered above the zero-line but also produced two higher highs.

So, a highly bullish case could see Dogecoin price revisit the $0.106 hurdle, bringing the total Dogecoin price gain to 40%.

DOGE/USDT 12-hour chart

DOGE/USDT 12-hour chart

On the other hand, if Dogecoin price slips below the selling climax at $0.0707, it would invalidate the bullish thesis. Such a development could see DOGE revisit the March 10 swing low at $0.0652.

Author

Akash Girimath

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.

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