DOGE bulls comeback could trigger 38% rally

  • Dogecoin price briefly dipped below the range low at $0.194.
  • The resurgence of buyers pushed DOGE above it and might trigger a 38% uptrend.
  • A breakdown of the $0.178 support level will invalidate the bullish thesis.

Dogecoin price has been on a steady and tiring downtrend since May 8. After a brief dip below the range low, DOGE has reclaimed it, indicating that the buyers might have come to the rescue.

Although undecided for now, an uptrend could stem here if the bullish momentum continues to accrue.

Dogecoin price at inflection point

Dogecoin price has shed roughly 73% from its all-time high at $0.745 on May 8, portraying the depth of the current sell-off. While DOGE did slide below the range low at $0.194, it has recovered relatively quickly, suggesting that the buyers have come to the rescue.

If this buying pressure continues to persist, a rally will likely originate from the current position. The barriers at $0.227, $0.254, and $0.276 will resist the move higher, but investors can expect a sweep above $0.276, a 38% upswing.

However, if the bulls can produce a decisive 6-hour candlestick close above $0.276, it will denote a shift in momentum favoring the bulls.

This move might trigger a 22% run-up to the June 14 swing high at $0.338.

DOGE/USDT 6-hour chart

On the flip side, if the dogecoin price fails to stay above the range low at $0.194, it will signify the inability of the buyers. In such a case, there is a high chance that the sellers push the dog-themed cryptocurrency down to the immediate support level at $0.178.

A breakdown of this barrier will invalidate the bullish outlook and could potentially trigger a 15% sell-off to $0.119.

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