Why Dogecoin Price Consolidation May Lead to an Explosive Rally
- Dogecoin price remains stable above the $0.127-$0.137 demand zone, hinting at gains.
- Investors can expect DOGE to trigger a 35% ascent to $0.194.
- A daily candlestick closing below $0.127 will create a lower low and invalidate the bullish thesis.
Dogecoin price is showing signs of rising as it holds above a crucial support level. This lateral movement is likely to result in an exponential acceleration that breaks through immediate obstacles.
Dogecoin price prepares for a breakout
The price of Dogecoin rose 40% between March 13 and March 28 and peaked at $0.153. This explosive movement created a springboard, ie a zone of demand, which helped to extend the uptrend. This support zone extends from $0.127 to $0.137 and DOGE is currently hovering above it. Further consolidation above this range will be essential to trigger a bullish move.
In such a case, the weekly resistance barriers at $0.163 and $0.194 will be the first blocks. Removing these hurdles will pave the way for market makers to push the coin even above $0.194 to collect the buy stop liquidity above. This development will signal a local top formation and is likely where the upside will be capped for the Dogecoin price.
In total, this surge would constitute a 50% gain from the current position at $0.144. Market participants are likely to start taking profits here, leading to a retracement.
DOGE/USDT 1-Day Chart
Regardless of the bullish outlook for Dogecoin price from a technical perspective, a sudden Bitcoin crash could result in DOGE without any pushback. In such a case, a daily candlestick closing below $0.127 will create a lower low and invalidate the bullish thesis for Dogecoin price. This development could lead to a further decline in DOGE to the $0.109 support level.