9/29/2022 | FXStreet
Dogecoin price provides sidelined buyers another opportunity before a 50% rally
- Dogecoin price slips back into the $0.0587 and $0.0650 barriers after the recent Bitcoin sell-off.
- This retracement could be a good place for a swing long, but for now, investors can expect a 12% run-up to $0.0650.
- A daily candlestick close below $0.0491 will invalidate the bullish theiss for DOGE.
Dogecoin price undid its gains seen between September 21 and 24 as it came tumbling down, following the footsteps of Bitcoin price. This downtrend has provided sidelined buyers a chance to accumulate before the inevitable explosion of bullish momentum that triggers an exponential rally.
Dogecoin price back to the pavilion
Dogecoin price rallied 22% between September 21 and 24, which allowed it set up a swing high at $0.0683. However, the momentum waned and the market conditions deteriorated, triggering a sell-off that undid this gain, pushing it back between the $0.0587 to $0.0650 barriers.
From scalpers’ perspective, the recent sell-off is a good opportunity to long the support and book profits at the resistance level. In total, this move could constitute a 12% gain. Additionally, if Bitcoin price is done crashing, the current level is a good place to enter a swing-long position.
From a swing perspective, Dogecoin price has the chance to break the multi-year declining trend line and sweep the equal highs at $0.0890. This run-up would constitute a 51% gain and is likely where the upside could be capped for DOGE.
While things are looking up for Dogecoin price, a failure to sustain the $0.0587 support level will indicate weakness among buyers and opens up the chance for sellers to takeover. If DOGE produces a daily candlestick close below the $0.0491 to $0.0587 demand zone, it will invalidate the bullish thesis and potentially trigger a sell-off to $0.0471.