- Dogecoin price shows a massive squeeze in volatility, foreshadowing an explosive move.
- A bullish outlook will see DOGE rally 45% and retest the $0.129 hurdle.
- On the other hand, a four-hour candlestick close below $0.062 will invalidate the bullish thesis.
Dogecoin price has been coiling up like a spring for roughly ten days, indicating that a massive move is about to occur. The congestion will likely lead to a bullish move for DOGE that is brimming with volatility.
Adding a tailwind of sorts to the volatile move for DOGE are recent remarks from the Dogecoin founder Jackson Palmer. Palmer claims to had not made a single buck from his creation. The co-founder expressed the view that he has disliked the crypto space for a while in a recent H3H3 podcast.
This is not the first time Palmer has done this. Additionally, Shibetoshi Nakamoto, the other co-founder of Dogecoin stated,
I would say jackson and i share quite a few perspectives - the big difference is he thinks the space is dumb and full of scams and doesn’t participate, and i think the space is dumb and full of scams and still participate cuz as far as i can tell everything else is just as dumb.
Additionally, Palmer also tweeted on May 14, stating that Tesla CEO Elon Musk, “Elon Musk is and always will be a self-absorbed grifter."
Dogecoin price to move higher
Dogecoin price crashed 50% over the last two weeks to set a swing low at $0.065. This massive downswing was a result of the UST-LUNA debacle, which caused the entire crypto market to tank.
Regardless, DOGE seems to be making a comeback as it rallied 45% from $0.065 to $0.095, flipping the $0.087 resistance level into a support barrier on May 13. Since then, the volatility seems to be drying up for the meme coin, leading to a steady decline below the said barrier.
A quick recovery combined with a resurgence of volatility will be the key ingredient in a successful run-up. This move would open the path for DOGE to retest the intermediate barrier at $0.107.
From the current position at $0.085, this move would constitute a 19% ascent. However, if buyers take control and convert the said barrier into a support floor, the rally could extend to the $0.125 target.
In total, this ascent would represent a 45% gain and is likely where a local top will form.
DOGE/USDT 4-hour chart
While things look edgy for Dogecoin price in terms of volatility, a recovery above $0.087 is a necessity for a rally’s revival. If Bitcoin price takes a U-turn and starts crashing, DOGE will promptly follow.
In this situation, if Dogecoin price produces a four-hour candlestick close below $0.062 will invalidate the bullish thesis. This development will open the path for bears to further crash DOGE to the immediate support level at $0.046.
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.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.