9/22/2022 | FXStreet
Dogecoin price is next in line to explode after XRP
Dogecoin price has produced its first higher low after a long downtrend, hinting at a reversal.
Investors should now expect DOGE to ricochet between the $0.0587 and $0.0650 barriers.
A daily candlestick close below $0.0491 will invalidate the bullish theiss for the meme coin.
Dogecoin price shows a strong affinity to recover losses as it digs itself out of a stable demand zone on a wave of buying pressure. With Bitcoin resolving its downside liquidity, the big crypto ought to help DOGE move higher in tandem.
Dogecoin price to make holders happy
Dogecoin price crashed 13% between September 11 and September 22 after getting rejected by the $0.0650 hurdle. This move pushed DOGE below the $0.0587 support level, where it currently hovers.
Between September 19 and 22, however, DOGE regrouped and formed a double bottom that has pushed it up by 5%. As Dogecoin price grapples with the $0.0587 hurdle again, all eyes are on a potential recovery.
If DOGE can flip the blockade at $0.0587 into a support floor, it could trigger an 11% run-up to the next significant resistance level at $0.065. As long as the meme coin stays between these barriers, investors can trade the oscillations, going long the support and short the resistance levels.
In a more bullish scenario, if Dogecoin price can overcome the long-standing declining trend line, it could attempt a rally higher to $0.0890. Since equal highs are formed here, market makers will likely aid DOGE with a back draught, pushing it higher to sweep this level and collect liquidity.
While things are looking up for Dogecoin price, a failure to push past the $0.0587 hurdle will indicate underlying weakness. If DOGE produces a daily candlestick close below the demand zone’s lower limit at $0.0491, it will invalidate the bullish thesis altogether.
This development could see Dogecoin price move to $0.0471 to regroup and give the recovery rally another go.