Will Dogecoin price rise in the face of adversity or sink to December 2022 lows?

Dogecoin price looks better than most altcoins after the recent sell-off. However, this minor pullback in DOGE could give sidelined buyers a chance to not only save the meme coin from collapsing but to trigger a huge uptrend.

Dogecoin price takes its time

Dogecoin price inflated by 45% between December 30, 2022, to February 4, 2023, and set up a swing high at $0.0998. While there were multiple daily candlestick closes above the buying climax at $0.0946, they were ephemeral.

During the last leg of this Dogecoin price rally, the Relative Strength Index (RSI) remains relatively flat, suggesting the exhaustion of the momentum for bulls. Despite this lack of gun powder, DOGE has managed to stay close to the aforementioned barrier until February 9. The meme coin has shed roughly 15% overnight and shattered the volume profile’s Point of Control (POC) at $0.0859. The POC is the highest volume traded for DOGE since June 15, 2022.

Currently, Dogecoin price tags the immediate support level at $0.0813, pondering a throwback. In case the buyers step in here, a quick recovery to $0.0859 is likely. A flip of this level will allow DOGE to take another jab at the buying climax at $0.0863.

Although unlikely, a successful flip of this level would open the path for Dogecoin price to trigger another rally and retest the $0.106 hurdle, bringing the total gain to 31%.

DOGE/USDT 1-day chart

While the bullish outlook for Dogecoin price makes logical sense, investors need to be aware of a Bitcoin price sell-off. A selling spree initiated by the big crypto holders could tank the entire market, including DOGE.

A daily candlestick close below $0.0813 will create a lower low and invalidate the bullish thesis for Dogecoin price. Such a development could see the meme coin revisit the supply climax at $0.0705.