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Why Dogecoin price hints at a 70% bull run

  • Dogecoin price is coiling up inside a bullish pattern, forecasting a trend shift to the upside.
  • Investors can expect DOGE to trigger a 70% upswing to $0.233.
  • A daily candlestick close below $0.078 will create a lower low and invalidate the bullish thesis.

Dogecoin price shows signs of a trend reversal as it approaches the end of its multi-month bottom reversal pattern. A decisive breakout on a weekly time frame will signal the start of a massive upswing for DOGE.

Dogecoin price to retrace its steps back higher

Dogecoin price has crashed roughly 85% from its all-time high and is currently hovering around $0.135. From May 3, 2021, to April 18, the dog-themed cryptocurrency formed three distinctive lower highs and lower lows, which when connected using trend lines reveals a falling wedge pattern.

This technical formation forecasts a 68% upswing, obtained by adding the distance between the first swing high and swing low to the breakout point. So far, Dogecoin price has failed to move above the upper trend line. Assuming this move occurs around $0.140, the target after a 68% upswing will be $0.233.

Historically, April month has been bullish for Bitcoin with positive returns, investors can expect DOGE to trigger an upswing in the coming week. In such a case, Dogecoin price will face a hurdle at $0.16, clearing this barrier is crucial for a further upswing. Therefore, a  resurgence of buying pressure could be the key to pushing the meme to its target at $0.233.

DOGE/USDT 1-week chart

DOGE/USDT 1-week chart

While things are looking up for Dogecoin price, a breakdown of the $0.109 support level will indicate weakness. This development will open the path for a 20% crash to the $0.087 to $0.078 demand zone. 

If DOGE produces a daily candlestick close below $0.078, it will create a lower low and invalidate the bullish thesis.

Author

Akash Girimath

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.

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