It is Dogecoin season, other altcoins can take a break
- Dogecoin price breached its year-and-a-half downtrend with a 163% upswing in the weekly timeframe.
- This breakout was followed by a 55% retracement and is ready to kick-start another rally.
- A weekly candlestick close below the $0.0675 support level will invalidate the bullish thesis for DOGE
Dogecoin price shows an explosive move could kick-start again after the end of a multi-year downtrend. Investors need to pay close attention to DOGE as it attempts another rally.
Dogecoin price ready to make another move
Dogecoin price was on a steady downtrend after hitting an all-time high at $0.739 in May 2021. A trend line connecting the swing highs showed that DOGE was in a steady decline, and every bullish attempt was hammered.
In late October, things changed as Dogecoin price rallied 163% in under two weeks, which shattered the multi-year downtrend. After setting up a local top at $0.158, DOGE slid 55% and formed a higher low around $0.07713
The new higher low was followed by a 56% upswing, where Dogecoin price is currently facing resistance at $0.109. If this trend continues, DOGE could produce a higher high at $0.181 or $0.190.
Adding credence to the trend continuation for Dogecoin price is the Relative Strength Index (RS), which seems to have reset at 50 and is currently bouncing. This development indicates that the bullish momentum is slowly rising in the weekly timeframe.
DOGE/USDT 1-week chart
On the other hand, if Dogecoin price fails to maintain this buying pressure, bears can take over. A breakdown of the $0.0675 support level on the weekly timeframe will invalidate the bullish thesis for DOGE by creating a lower low.
Such a move will skew the odds in the bears’ favor and potential trigger a 26% sell-off, knocking Dogecoin price to tag the $0.0491 support level.
This is how Bitcoin price moves could affect Dogecoin price
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.
