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The price of Dogecoin is showing signs of a move higher as it holds above an important support level. The current lateral movement is likely to lead to an exponential run-up that will destroy the existing obstacles.
Between March 13 and March 28, the price of Dogecoin rose by 40% and set a swing high at $0.153. This explosive move created a stepping stone, also known as a demand zone, which helped prolong the uptrend. This support area extends from $0.127 to $0.137 and the DOGE is currently hovering above it. Further consolidation above this range will be the key to a bullish move.
In this case, the weekly resistance barriers at $0.163 and $0.194 would be the first hurdle. Breaking them will open up an opportunity for market makers to push DOGE above $0.194 to collect liquidity above the stops. This scenario will signal the formation of a local top, probably where the rise in the price of Dogecoin will be limited.
Overall, this jump will be just under 50% gain from the current position at $0.152. At this level, market participants are likely to start taking profits, which will lead to a pullback.
Regardless of the bullish Dogecoin price prediction supported by the technical setup, a pullback in Bitcoin will push DOGE back. In such a scenario, a daily candle close below $0.127 would create a lower low and reverse the Dogecoin bullish trend. Going forward, the token may drop to the $0.109 support level.
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