- Dogecoin price is in an uptrend after bouncing off the ascending triangle’s lower trend line.
- Transactional data reveals a major supply barrier at $0.061 will decide DOGE’s fate.
- A decisive close above the resistance level could propel the meme coin by 10% to $0.069.
The Dogecoin price forms a bullish consolidation pattern that hints at massive gains if crucial areas of interest are dismantled.
Dogecoin price remains inconclusive
The Dogecoin price has set up three distinctive higher lows as a result of aggressive buyers. The run-up from these swing lows exhausted at $0.064, creating a series of highs. Such a price action results in an ascending triangle when the pivot points are connected using trend lines.
This technical formation has a bullish bias and projects a 35% upswing, determined by measuring the distance between the swing points formed on February 15 and February 23. Adding this measure to the breakout point at $0.064 reveals the Dogecoin price target at $0.087.
However, DOGE needs to clear crucial barriers before it proceeds to $0.087. The first area of interest is $0.061, where the Dogecoin price is currently trading. A swift yet decisive close on the daily chart above this level will allow the meme coin an opportunity to surge 10% to $0.069.
If the buyers slice through this barrier mentioned above, a 26% upswing to the target at $0.087 seems likely.
DOGE/USDT 1-day chart
Portraying the importance of $0.061 is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows 58,000 addresses that previously purchased 8.92 billion DOGE are ”Out of the Money.”
Hence, surpassing this key zone will provide a tailwind from investors present here. Further cementing an upswing is a massive stack of investors present below the current price levels.
DOGE IOMAP chart
However, there is a likelihood that the bulls’ exhaustion leads to a slow yet steady downtrend toward the lower boundary of the ascending triangle at $0.056, which is a 9% drop in the Dogecoin price.
If the bulls fail to rescue the altcoin here, another 9% crash to $0.050 can be expected.