Why Dogecoin price consolidation can result in explosive rally
- Dogecoin price holds steady above the $0.127 to $0.137 demand zone, hinting at gains.
- Investors can expect DOGE to trigger a 35% ascent to $0.194.
- A daily candlestick close below $0.127 will create a lower low and invalidate the bullish thesis.
Dogecoin price shows signs of moving higher as it holds above a crucial support level. This sideways movement is likely to result in an exponential run-up that shatters immediate hurdles.
Dogecoin price prepares for a breakout
Dogecoin price rallied 40% between March 13 and 28 and set a swing high at $0.153. This explosive move created a stepping stone aka demand zone that helped extend the uptrend. This support area extends from $0.127 to $0.137 and DOGE is currently hovering above it. A further consolidation above this range will be key in triggering a bullish move.
In such a case, the weekly resistance barriers at $0.163 and $0.194 will be the first blockades. Clearing these hurdles will open the path for market makers to push the meme coin above $0.194 to collect the buy-stop liquidity above. This development will signal a local top formation and is likely where upside will be capped for Dogecoin price.
In total, this run-up would constitute a 50% gain from the current position at $0.144. Market participants are likely to start booking profits here, leading to a retracement.
DOGE/USDT 1-day chart
Regardless of the bullish outlook for Dogecoin price from a technical standpoint, a sudden crash for Bitcoin could translate to DOGE without any pushbacks. In such a case, a daily candlestick close below $0.127 will create a lower low and invalidate the bullish thesis for Dogecoin price. This development could lead to a further decline in DOGE to the $0.109 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.
