fxstreet.com
- Dogecoin price shows potential for a 20% upswing as it bounces off a stable support level.
- The resulting rally is likely to propel DOGE to $0.17, followed by a revisit to $0.20.
- A daily candlestick close below $0.133 will invalidate the bullish thesis.
Dogecoin price shows an interesting setup that skews the favor for bulls and indicates that an uptrend has begun. Moreover, on-chain metrics signal little to no resistance up to certain significant levels.
Dogecoin price follows Shiba Inu’s lead
Dogecoin price has been trading between the $0.11 and $0.17 barriers since March 24. After flipping the $0.11 hurdle into a foothold nearly three weeks ago, DOGE exploded by 20% to retest the $0.17 ceiling.
A failure to flip this hurdle combined with the market structure of the crypto markets led to an eventual retracement to $0.11. As a result, DOGE was stuck trading close to the lower limit. However, since the retest on April 11, the meme coin has shown interest by rallying 7% to where it currently trades - $0.14.
Going forward, investors can expect Dogecoin price to rally 17% and tag $0.17. Clearing this barrier is key in propelling the dog-themed crypto to $0.20. In total, this run-up would constitute a 35% gain.
DOGE/USDT 1-day chart
Supporting this uptrend for Dogecoin price is IntoTheBlock’s Global In/Out of the Money (GIOM) model, which shows that the immediate hurdle is weak. Therefore, the DOGE price could face some trouble in the next cluster that extends from $0.15 to $0.20. Here, roughly 335,000 addresses that purchased 11 billion DOGE are “Out of the Money.“
Therefore, a move into this range is likely to result in pushback from the selling pressure of underwater investors rushing to break even.
DOGE GIOM
On the other hand, a daily candlestick close below $0.133 will invalidate the bullish thesis for Dogecoin price by flipping the said barrier into a resistance level. In this case, DOGE could trigger a 10% crash to retest the $0.11 support level.