How to profitably trade the next Dogecoin price move?
- Dogecoin price is stabilizing above the $0.048 support level, hinting at a potential recovery.
- A bounce off this level could lead to an 85% recovery that retests the $0.109 hurdle.
- However, a breakdown might result in a swift 70% crash to $0.014.
Dogecoin price seems to be picking up steam as it hovers above a significant support floor, suggesting the possibility of recovery. The said barrier is an inflection point and could make-or-break the situation for DOGE.
Dogecoin price takes its time
Dogecoin price has been on a downtrend since its all-time high at $0.739 on May 7. After producing a plethora of lower lows and lower highs, DOGE has come to retest the $0.048 support level.
This area was important as it provided bulls a platform to consolidate and recuperate their strength in early 2021, which led to a 1,400% upswing in Dogecoin price in roughly the next two months. Hence, a retest of this level could trigger some of the unfilled orders, leading to a minor bounce.
Investors can expect DOGE to at least rally 41% to retest the $0.082 intermediate resistance barrier. Flipping this hurdle into a support level will allow bulls to extend this run-up to $0.109. This upward move would indicate an 85% bounce and is likely where the recovery rally will pause for Dogecoin price.
DOGE/USDT 3-day chart
While things are looking optimistic for Dogecoin price, a three-day candlestick close below the $0.048 support level will invalidate the bullish thesis. Such a development will allow bears to crash DOGE lower and fill the price inefficiency aka Fair Value Gap (FVG), extending from $0.041 to $0.014.
Doing so, will alleviate any downside pressure and prep Dogecoin price for a healthy recovery.
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.
