- Dogecoin is down 50% from its May 8 peak of $ 0.739.
- A decisive close above $ 0.45 will confirm the uptrend.
- After rising above $ 0.45, if DOGE falls to $ 0.380, the bullish thesis will be overturned.
The Dogecoin price is currently in a no-trade zone as such and shows no obvious bias. The drawdown has been reduced from 71% to 50% after the recent recovery. However, there is no confirmed bullish bias yet.
Dogecoin price awaits a critical level
Dogecoin price dropped 50% from $ 0.739 on May 8 to the current level of $ 0.374. Despite such a large-scale correction, DOGE is making higher highs. A 20% rally to retest the 50% Fibonacci retracement level at $ 0.739 seems like a no-brainer for the coin itself.
Depending on how events unfold here, the Dogecoin price may either rally to test old highs again, or continue to fall.
A break above 0.739 would signal a major trend reversal in favor of traders. If that happens, the need for Dogecoin price could be increased by 25% to $ 0.560 or 32% to $ 0.597.
While it’s unlikely that if the bullish momentum continues, the meme-themed cryptocurrency could even rally to retest the all-time high at $ 0.740.
DOGE / USDT 12-hour chart
The bullish thesis is based on the central assumption that the Dogecoin price is creating a swing above $ 0.739. However, investors should be prepared for a dip that will test key support levels again if DOGE encounters a rejection at that level.
In such a case, it seems likely that it will fall 15% to $ 0.380.
Breaking this barrier could result in a 13% sell-off to $ 0.331, which coincides with the 70.5% Fibonacci retracement level.
In bearish conditions, the decline could reach $ 0.282, or about 37% of the 50% Fibonacci retracement level.