- Dogecoin price saw bulls rejected after failing to break above the R1 at $0.29 on Monday.
- DOGE price is supported by two elements and could see bulls flocking in to build momentum for a breakout.
- On the upside, a retest of $0.35 is more than overdue.
Dogecoin price continues its slow grind higher after being rejected by the monthly R1 resistance level for the second time this month. As bulls start to add more DOGE to their positions, momentum is building for a breakout trade. In the event the breakout is successful, the first resistance bulls will face will be at around $0.3, which goes back to mid-June.
Dogecoin price sees bulls building momentum for a retest of $0.35
Dogecoin price failed to benefit from any of the positive news out of Tesla, Elon Musk and the Nasdaq index. Instead, DOGE price saw bulls rejected yesterday after their attempt to break above the monthly R1 resistance level at $0.29 – it was their second attempt this month. With the slight fade today, bulls remain optimistic and are using that opportunity to add more volume to their long positions, and a breakout looks set to happen soon.
DOGE price is offering bulls a good technical reason for going long at the historical $0.26 level and the bounce off the red descending trend line from August 17. In case that does not hold, bulls could make a fade-in trade with the monthly pivot, and the 55-day Simple Moving Average at around $0.24, with both seen as supporting elements. Once the breakout unfolds, expect bulls to first hit $0.35 and next $0.45, with the latter incorporating a 76% gain from the current DOGE price level.
DOGE/USD daily chart
Should global markets start to tumble with reemerging worries on the reflation trade, or should a global rise in Covid cases put certain important regions back into lockdowns, expect cryptocurrencies to correct heavily. DOGE price would quickly see bulls fleeing the scenes and bears coming in, pushing price action back against the green ascending trend line. A break below would push price-action back towards $0.13.