If Dogecoin price continues on its path, DOGE could kickstart 110% rally
- Dogecoin price has breached a declining weekly trend line, signaling a bullish resurgence.
- Clearing the weekly MRI resistance level at $0.0814 opens the path for DOGE to trigger a 100% move.
- A breakdown of the $0.0574 support level will invalidate the bullish thesis.
Dogecoin (DOGE) price has shown incredible bullish momentum that has allowed it to clear a declining weekly trend line that has served as a hurdle for the past year. Hence, the recent development is bullish for DOGE holders.
Read more: Dogecoin futures open interest jumps to 7b DOGE, indicating risky bets
Dogecoin price ready to fly high
Dogecoin (DOGE) price shows signs of slowing down after clearing a multi-month trend line connecting the swing highs formed since October 2022. The near-10% rally witnessed last week has caused DOGE to breach this hurdle.
As a result of this move, Dogecoin price has even bounced off the $0.0707 support level and is currently attempting to overcome the $0.0814 hurdle. If successful, DOGE could trigger a 110% upswing to the next critical resistance level of $0.0170.
Supporting this massive rally in Dogecoin price is the Relative Strength Index (RSI), which has surpassed the 50 mean level, signaling a stark rise in bullish momentum. The Awesome Oscillator (AO) histograms are reducing in size below the zero line and are close to tipping over above it. A successful push above the zero line could see Dogecoin price kickstarting a massive uptrend.
Read more: Dogecoin Price Prediction: DOGE in a fit to break $0.0786 after three unsuccessful attempts
DOGE/USDT 1-day chart
On the other hand, if Dogecoin price produces a weekly candlestick close below the immediate support level of $0.0707, it will signal signs of trouble. In such a case, DOGE could slip into consolidation between the $0.0707 and $0.0574 barriers.
But a weekly candlestick close below the $0.0574 support level will invalidate the bullish thesis by producing a lower low. This development could see DOGE crash 14% and encounter the $0.0495 support level.
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.
