- Dogecoin price has shed 15% after facing rejection at $0.0946, aka buying climax.
- A minor pullback to POC at $0.0859 or $0.0813 support levels will be a good place to accumulate DOGE.
- A daily candlestick close below $0.0813 will invalidate the bullish thesis for the meme coin.
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.
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.
Recommended Content
Editors’ Picks
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Grayscale has withdrawn its 19b-4 application for an Ethereum futures ETF. SEC Chair Gensler says several crypto assets are securities as he waives off ETH classification question. Ethereum could sustain horizontal movement in the coming weeks.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
98% of creditors receive at least 118% of allowed claims within sixty days of effectiveness, others get billions in compensation. Plan would resolve disputes with government and private stakeholders without costly and protracted litigation.
Solana FireDancer validator launches documentation website, SOL price holds 23% weekly gains
Solana FireDancer validator has debuted, meant to replicate Solana’s functionality but with higher performance. Built from the ground up for performance, FireDancer advertises speed, security, and independence.
Bitcoin price may see further upside, Standard Chartered says, citing looser regulation and US spot ETFs
Bitcoin could benefit from US fiscal dominance and Trump winning, Standard Chartered says, citing loser regulation and spot ETF approvals. Hong Kong issuers told WuBlockchain that the government prohibits sale of virtual asset-related products to mainland Chinese.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.