A 20% rally before the next plummet occurs
- Dogecoin’s recent uptrend move has the potential to conquer another 20% of gains.
- Still, the resistance near $0.08 may have been the catalyst for a much larger decline in the DOGE price.
- Key levels have been identified for both the bullish and bearish scenarios.
Dogecoin price reconquers the $0.06 boundary and has the potential to climb into the mid $0.07 zone. Still, investors should be aware of a much larger bearish scenario underway.
Dogecoin price retaliates
Dogecoin price has rallied impulsively after falling beneath the $0.06 barrier during the first week of September. The impulsive countertrend wave consolidates above the 8-day exponential and 21-day simple moving averages, which is an optimistic signal for the world’s favorite dog coin.
Dogecoin price currently auctions at $0.063. A Fibonacci Retracement tool surrounding the summer high at $0.089 and the September low at $0.05 shows the current impulsive wave as just a 23.6% retracement. Based on Elliot Wave and Fibonacci methods, the DOGE price could continue rallying towards the 61.8% retracement level at $0.075 in the coming days.
Such a move would result in a 20% increase from the current market value.
DOGE USDT 8-Hour Chart
Nonetheless, investors should remember that although the counter trend rally is good eye candy, the DOGE resistance near $0.089 was quite significant in terms of volume and price action. The DOGE price has not yet matched the bearish onslaught in terms of volume or candlestick sizes.
Thus, the overall downtrend thesis mentioned last month is still in play. A breach of the September low at $0.057 low could trigger a 20% decline, targeting the June 18 swing low at $0.049. Invalidation of the bearish thesis is a breach of the August high at $0.089. If the bulls can conquer this level, they could induce a favorable market environment targeting $0.21, resulting in a 250% increase from the current Dogecoin price.
In the following video, our analysts deep dive into Dogecoin’s price action, analysing key market interest levels. – FXStreet Team