- DOGE price seems ready for a retracement towards 70.5% FIB retracement barrier near $0.139 after latest upsurge.
- The pullback will form a base for Dogecoin to gain 55% towards $0.215.
- A plunge under the $0.121 range low will cancel the bullish case.
Dogecoin (DOGE) saw a massive upward move last week, pushing past a swing peak to gather liquidity. The move indicates that DOGE is ready for a correction that will attract bulls to gather momentum for the upcoming leg-up.
DOGE Price Readies for another Surge
Dogecoin saw its price rallying by 36% in about two weeks, forming a swing peak near $0.173. The upswing gathered buy-stops beyond the double top created on 91 January and 20 January. For now, the original meme coin will likely correct as market participants continue with profit-booking.
The altcoin might see a 10% drop towards 70.5% FIB retracement zone at $0.139. Here, buyers may gather to create a base before Dogecoin skyrockets. The resulting uptick may overcome the weekly resistance level near $0.163. With that, DOGE can eye its upside obstacle at $0.194.
Market makers can extend this upsurge past $0.215 and gather buy-stop liquidity beyond the triple top formation. That would mean a 55% total ascent, and Dogecoin can set a local high at this mark.
Though things appear safe for the meme coin, losing the support area of $0.129 will trigger doubt among sidelined investors. A 4hr candle close under the $0.121 range low will produce a lower low, canceling the bullish case. A possible surge in selling strength at this territory may catalyze a massive fall towards $0.080.
Meanwhile, DOGE/USD trades under the 50-100-and 200 DMA, suggesting a bearish mode. Nevertheless, the lately reclaimed 20 exponential moving average should bolster bulls in dip-buying. Nevertheless, the signal line and MACD appear primed for breaks past the midline. The steady growing Histogram with green bars supports the emerging underlying bullish bias.
DOGE 4Hr Chart
If sellers impose massive supply strength near $0.16, the crypto might reverse and drop the nearest support at $0.43. Such a move will mean bears presence, threatening a continued downtrend.
Contrarily, defending $0.16 by buyers can see DOGE surging towards overhead resistance near $0.2, a vital hurdle in confirming Dogecoin’s bullish recovery.