Is Dogecoin price still set to rally 70%

Dogecoin price showed massive promise last week after an impulsive uptrend. However, the subsequent selling pressure has caused DOGE to retrace lower, delaying its breakout and hence the rally.

Dogecoin price needs to breakout

Dogecoin price nosedived 85% from its all-time high of $0.740 and formed a swing low at $0.109 in late February. This downswing, which took roughly less than a year created three distinctive lower highs and lower lows.

Connecting these swing points using trend lines describes a falling wedge pattern. The technical formation forecasts a 68% upswing to $0.235, which is obtained by adding the distance between the first swing high and swing low to the breakout point.

Despite the 23% upswing last week, DOGE has undone most of its gains. However, the weekly candlestick closed on a positive note, keeping the hope alive for a breakout from the falling wedge. 

A weekly candlestick close above $0.159 will provide a confirmation of an uptrend and trigger a move to the forecasted target at $0.235. In total, this run-up would constitute an 80% ascent from the current position at $0.131.

DOGE/USDT 1-week chart

While things are looking optimistic for Dogecoin, Bitcoin price is hovering above a crucial support level. If it breaks down, the spillover effect could ruin Dogecoin price’s push and turn the bullish setup sour. If DOGE produces a weekly candlestick close below $0.078, it will invalidate the falling wedge setup and bullish thesis revolving around it.