Dogecoin price is currently hovering below a suite of resistance, preventing it from climbing higher. A swift breach of these levels is likely considering the consolidation that Dogecoin is undergoing.
Dogecoin price rallied 42% between August 6 and August 8 in one fell swoop. This explosive run-up came after an extended sideways movement before it. At the time of writing, the DOGE price is also consolidating under the $0.273 resistance barrier.
While a price breakout from this coiling price action could head, either way, investors can expect a bullish breakout. This directional bias is due to the overall structure of the big cryptocurrency, which is leaning toward the buyers.
Although the upswing is plausible, it is not apparent due to the presence of the supply zone, ranging from $0.280 to $0.312 level. A decisive 12-hour candlestick pattern closes above $0.312 will indicate a resurgence of buyers. This move opens up the path to the next ceiling at a price of $0.328.
This leg-up from $0.257 to $0.328 level constitutes a 25% advance for Dogecoin price.
While the upswing narrative might seem a bit forced, DOGE price might fail to slice through the supply zone, stretching from $0.280 to $0.312 level. A failure will indicate a weak buying pressure and allow the bears to run rampant.
In such a case, investors can expect a retracement level to the $0.230 support level. While this downswing does not hurt the optimistic narrative, it might delay the ascent.
However, if the bears shatter $0.230, it will invalidate the bullish pattern thesis and potentially trigger a crash to $0.213.
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