- Dogecoin price is on a downswing, preparing for a 20% upswing to $0.239.
- DOGE could extend its leg-up to $0.256 if the buying pressure rises.
- A breakdown of the range low at $0.183 will invalidate the bullish thesis.
Dogecoin price looks to be heading toward the high probability reversal zone, suggesting that an uptrend is likely to begin soon. The resulting rally has a high chance to retest the range high and push beyond it to set up higher highs. Therefore, investors need to pay close attention to the current levels, as it screams ‘buy.’
Dogecoin price to set up higher highs
Dogecoin price has rallied 12% over the last six days and is currently approaching the midpoint of the trading range at $0.205. A dip below this barrier is likely to knock DOGE down toward the buy zone, extending from $0.190 to $0.200.
A dip into this area is likely to trigger an increased buying activity, kick-starting an upswing. In this situation, investors can expect Dogecoin price to retest the range high at $0.227. However, the market makers will be eyeing the liquidity resting above the $0.238 swing high. A retest of this level will constitute a 20% run-up.
In a highly bullish case, Dogecoin price could rise higher to $0.256, representing a 28% ascent from $0.200.
DOGE/USDT 4-hour chart
On the flip side, if Dogecoin price fails to hold above the buy zone, ranging from $0.190 to $0.200, it will indicate a weakness among buyers. This development will knock DOGE down to the range low at $0.183.
Here, the buyers have another chance for a comeback if they band together. However, a daily close below $0.183 will create a lower low and invalidate the bullish thesis.