- Dogecoin price has broken out above a descending trend channel that acted as resistance throughout December.
- DOGE has the potential to rally to the midway point of the recent downtrend.
- Invalidation of the bullish thesis is a breach below $0.065.
Dogecoin price could make a move for December’s liquidity zones. Traders should keep a close eye on DOGE in the days to come.
Dogecoin price set to make a bullish move
Dogecoin price is well known for making sudden trend reversals and random rallies. On January 4, DOGE shows subtle signals suggesting a change in market behavior. Although the trade idea would be risky, the bulls could pull off a 20% hike targeting $0.090.
Dogecoin price currently auctions at $0.072. During December, the notorious meme coin fell by 33%, the largest monthly decline in all of 2022. The move south was aided by resistance from a descending parallel channel that persistently rejected the bullish countertrend attempts on December 5, 13 and Christmas.
On January 1, the bulls finally closed above the troublesome barrier and have since climbed up by 4%. At the time of writing, the bulls have successfully reconquered the 8-day exponential moving average. The next hurdle wil be the 21-day simple moving average of $0.074. A 4-hour candle stick close above the aforementioned indicator could catalyze a sharp uptrend rally to collect liquidity near the $0.090 zone. The target zone is the midway point of December’s 33% mudslide.
DOGE/USDT 1-Day Chart
Invalidation of the uptrend depends on the swing low within the descending trend channel at $0.065 remaining unbreached. A breach of the barrier could catalyze a decline toward the October trading range near $0.060 even. DOGE would decline by 17% if the bearish scenario occurred.