While things are looking up for Dogecoin price, the breakout of the demand zone will add fuel to the fire. A daily candle close below $0.127 will invalidate the bullish Dogecoin price thesis by creating a lower low. This move will also lead to the breakout of the demand zone, indicating an increase in selling pressure.
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In this situation, investors can expect Dogecoin to pull back to the $0.109 support level, allowing buyers to regroup and give the uptrend another chance. Dogecoin price is facing exhaustion after its recent gains causing a minor pullback. This pullback has pushed Dogecoin into a demand zone, suggesting the possibility of a rapid advance.
While the pullback will allow Dogecoin buyers to rally, it has been caused by Bitcoin’s sudden downtrend. Regardless, the pullback has caused Dogecoin to retest the $0.127-$0.137 demand zone, which will provide the bulls with the additional momentum to start another leg.
Real-time chart of Dogecoin DOGE DOGEUSD cryptocurrency quotes over a one-day time frame
The resulting rally will drive Dogecoin to retest weekly resistance barriers. Overcoming these hurdles is crucial for market makers to get the buy stop liquidity that sits above the $0.194 barrier. This rally would therefore constitute a 60% gain for investors willing to take the opportunity, and now the time has come for Dogecoin price to retest the daily demand zone.