• Dogecoin price is hovering around $0.066, the highest traded volume level for the last 100 days.
  • For massive gains to kick start, DOGE needs to sweep the liquidity resting below the equal highs at $0.057.
  • A breakdown of the $0.048 to $0.057 demand zone will invalidate the bullish thesis. 

Dogecoin price is at that point in its lifespan, where long-term investors need to wait and short-term investors ignore it due to a lack of volatility. This crossroads for DOGE, however, offers a massive payout for patient market participants that are ready to wait for things to fall into place. 

Dogecoin price hatches a comprehensive plan

Like many altcoins, Dogecoin price nosedived 71% due to the LUNA-UST fallout between April 25 and June 18. Regardless, the crypto markets formed a collective bottom in mid-June and have been on a recovery path since.

However, checking the volume profile for DOGE for the crash shows that the highest volume was traded at the $0.066 level, aka Point of Control (POC). This barrier serves as a support and resistance level, relative to the price. 

Currently, DOGE is trying to bounce off this level, but the market condition seems to be deteriorating due to the recent breakdown of Bitcoin below the 200-week Simple Moving Average (SMA) at $22,749.

From a technical perspective, a breakdown of the POC is in the best interest of Dogecoin price and long-term investors since it would allow DOGE to retrace and collect the sell-side liquidity resting below equal lows formed at $0.057.

Shedding an optimistic light on this narrative is the presence of the $0.057 to $0.048 demand zone. In combination, a pullback into $0.057 will serve as a perfect launching pad for Dogecoin price to kick-start its next leg.

The level that is significant and could hinder this potential rally is the midpoint of the 71% crash at $0.110. Assuming DOGE does retest the aforementioned barrier, it would constitute a 90% upswing.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

While the idea of a 90% upswing for DOGE seems appealing, investors also need to consider the invalidation thesis. If the Dogecoin price fails to react to the demand zone due to excessive selling, things could turn ugly swiftly.

A daily candlestick close below the demand zone’s lower limit at the $0.048 level, will not only invalidate the structure but also create a lower low, shifting the narrative favoring bears. This development will also put an end to the bullish thesis and could result in Dogecoin price retracement to $0.045 or $0.040 levels.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Tezos set for the last stretch as investors ignore warnings

Tezos set for the last stretch as investors ignore warnings

Tezos (XTZ) price action is printing a staggering performance in just a slim two months with 62% gains after bouncing off $1.19 and nearing $2.

More Tezos News

SEC supporters come to the rescue, while XRP price hints at a potential crash

SEC supporters come to the rescue, while XRP price hints at a potential crash

XRP price is grappling with a significant resistance barrier after months of trying to flip it. The most recent failure could result in a steep correction, especially if Bitcoin price crashes.

More Ripple News

Dogecoin Price Forecast: A short-term 60% breakout play and macro levels to DCA

Dogecoin Price Forecast: A short-term 60% breakout play and macro levels to DCA

Dogecoin price shows that the bulls are back in town and have already triggered a journey to the upside. While this outlook was expected in our previous publications, this article will also take a look into the macro outlook for DOGE.

More Dogecoin News

Here’s what to expect from Bitcoin, Ethereum price as Thailand tightens regulation

Here’s what to expect from Bitcoin, Ethereum price as Thailand tightens regulation

Thailand’s central bank is working on tightening regulatory oversight on cryptocurrency platforms. The central bank is prepared to overhaul crypto rules once new amendments give it regulator powers, alongside the Thailand SEC. 

More Bitcoin News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP