Dogecoin shows hindrance as it tries to overcome a resistance support barrier. A minor price pullback after rejection seems likely before the DOGE bulls kick-start an upswing.
DOGE price is currently faced with the Tom DeMark Sequential indicator’s State Trend Resistance support level at $0.332, preventing it from surging higher.
A decisive close above this support level might invoke a potential sell signal from the TD Sequential indicator in the form of a green nine candlestick pattern, which forecasts a one-to-four candlestick price correction.
If this scenario comes to pass, investors can expect the DOGE price to find a support level on the demand zone extending from a price of $0.262 to $0.302. Here, the buyers could give the 25% DOGE upswing to $0.414 another try.
On the other hand, if the buying pressure continues to pour in, then Dogecoin price might ignore the threat of reversal and proceed higher to hit its intended target at $0.414.
Adding a tailwind to the DOGE bullish narrative is IntoTheBlock’s In/Out of the Money Around Price model, which shows a lack of resistance support barriers.
Roughly 38,700 addresses that purchased 735 million Dogecoin are “Out of the Money.” Hence, clearing this level will put the DOGE price on a path of least resistance to retest its recent swing high at $0.414.
Regardless of the technicals, a potential price spike in selling pressure that pushes Dogecoin's price below $0.285 would question the bullish momentum. However, a decisive 4-hour candlestick chart close below $0.262 would invalidate the bullish thesis and trigger a 13% downswing to the price of $0.226.
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