The price of Dogecoin (DOGE) is showing a clear sign that it will bounce off of a stable support level. With a small reset of DOGE’s bullish momentum, DOGE could enter into a quick rally.
DOGE’s price recovered above the selling climax at $0.0705 and rallied 32%. During this upward move, DOGE’s price flipped the $0.0813 hurdle into a support level. Investors may need to brace for a range tightening or a retest of the immediate support level at $0.0813 should the meme token’s price trade around the $0.0856 level.
CoinMarketCap shows that DOGE’s price stands at $0.08564 after it dropped 1.59% over the last 24 hours. Despite this, DOGE’s price is still up 2.02% over the last 7 days.
Daily chart for DOGE/USDT (Source: CoinMarketCap)
The daily RSI indicator has pulled back from the overbought region to the midpoint. As a result, bulls currently have an opportunity to make a comeback. A reset of the RSI at 50 could be the catalyst that ignites the mini rally in DOGE’s price. Should this happen, then the rally could take DOGE’s price up to the buying peak at $0.0946.
A successful flip of this level into a support floor on the daily time frame will allow DOGE’s price to rise to $0.106. This would constitute a 30% gain in DOGE’s price.
On the other hand, if DOGE’s price fails to remain above the $0.0813 level, then it will signal weakening bullish power. If this level is then flipped into resistance then the bullish thesis will be invalidated. This would then likely result in a 12% drop in DOGE’s price and may result in the meme token’s price revisiting the selling climax at $0.0705.
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