- Dogecoin price has been on a downswing since August 16 and is ready for a reversal.
- A successful bounce off the $0.262 to $0.281 demand zone indicates a resurgence of buyers.
- If DOGE breaks below $0.240, it will invalidate the bullish thesis.
Dogecoin price hit a dead end after setting up a swing high on August 16. Since this point, DOGE bulls are nowhere to be seen, which resulted in a downswing. However, the retracement pushed the meme coin to a critical support area that will likely trigger an upswing.
Dogecoin price readies for an explosive upswing
Dogecoin price dropped roughly 25% after the August 16 swing high at $0.352. This descent pushed DOGE into a demand zone, ranging from $0.262 to $0.281. This pullback was met with a sudden uptick in buying pressure that has currently pushed Dogecoin price up by 12% to where it is presently.
Going forward, investors can expect the meme coin to continue its upswing until it encounters the $0.328 resistance level. A decisive close above this crucial barrier will open the path to $0.40.
However, in some cases, the upswing could halt at the $0.368 resistance level. The run-up to $0.40 represents a 35% climb from the current position.
DOGE/USDT 1-day chart
On the other hand, if the buyers fail to hold Dogecoin price above the demand zone, extending from $0.262 to $0.281, it will reveal a weak buying pressure and an increased seller activity. Such a move will delay the upswing.
However, a decisive close below $0.240 will invalidate the bullish thesis and, if the crash continues, DOGE could head to $0.230.