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The price of Dogecoin reflects an interesting setup that can bring investors huge profits. This uptrend will begin after a small pullback, which will allow market participants to buy DOGE at a discount.
The price of Dogecoin has been consolidating around the $0.087 mark for almost three weeks. A low swing on May 26 at $0.074 marked the end of the deviation and led to a recovery above the $0.082 barrier.
That rebound is currently battling the $0.087 hurdle, but is likely to stop soon given the oversold state of bitcoin’s price. Consequently, investors can expect the price of Dogecoin to adjust to the direct support level of $0.082.
A further decline could bring the price of DOGE down to $0.076, from where an uptrend could potentially begin. It is likely to push the price of Dogecoin to an intermediate resistance at $0.101, which also coincides with the four-hour moving average of 200.
It is possible that the bulls will extend this movement to a ceiling of $ 0.125, resulting in an overall increase of 52%.
Supports the optimistic price forecast of Dogecoin model IntoTheBlock Global In/Out of the Money (GIOM). This index shows that a group of underwater investors who bought about 19.46 billion DOGE did so at a price of $ 0.133.
The roughly 358,000 addresses that bought a meme coin at these levels are “out of the money” and are likely to break even and increase pressure from sellers if dogecoin’s price reaches this area. Consequently, DOGE’s growth potential is capped at $0.133.
Regardless of the optimistic outlook and the performance of the network, if the price of bitcoin makes a reversal, the price of Dogecoin will immediately follow it. In this case, the closing of the four-hour candle below $ 0.073 will invalidate the bearish forecast for DOGE.
As a consequence, the price of Dogecoin will move to a support level of $ 0.062, where buyers will be able to regroup and plan another recovery.
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