- The price of Dogecoin appears to have formed a base at $0.0574, which is a launch pad.
- The 7% gain seen so far could expand to 20% as DOGE attempts to retest the $0.0729 barrier.
- A daily candle closes below $0.0574 without a quick rise disproves the bullish thesis.
The price of Dogecoin has been consolidating above the lows for some time now. The recent Bitcoin price rally has triggered a rally for all altcoins, including DOGE. Therefore, investors should pay close attention to the dog-themed cryptocurrency, which seems to be poised for rapid growth.
Dogecoin price ready to move
The price of Dogecoin fell by 35% between August 17 and September 7 after rejecting a multi-year downtrend line at around $0.0889. This downtrend formed a base at $0.0574 that even made lows.
Although DOGE was supposed to collect liquidity to sell below these lows, this did not happen. Instead, the price of Dogecoin formed a base here after a brief consolidation and caused a 7% gain.
This move is likely to expand as the big cryptocurrency moves north. As such, investors can expect at least a 20 percent upside to $0.0729, which is in line with the multi-year downtrend line mentioned above.
Interestingly, a break above this confluence will signal a buying opportunity as this will be the first time the price of Dogecoin has reached this level in about 500 days. So this development could cause a significant acceleration for DOGE and restart the bull run.
However, until said trendline is crossed, DOGE upside is capped at $0.0729.
DOGE/USDT 1-day chart
On the other hand, if the price of Dogecoin fails to make a higher high, it will signal weakness on the part of the buyers. In such a case, investors should provide DOGE with the opportunity to collect liquidity for a sell stop below $0.0574 free of charge.
If the price of Dogecoin forms a daily candle below $0.0574 without a rapid rise, the bullish thesis will be invalidated.