- Dogecoin price is traversing a rising wedge formation, suggesting a short-term correction on the horizon.
- A breakdown of the lower trend line is likely to result in a retest of the $0.235 support floor.
- A bounce from this barrier will likely propel DOGE by 50% to the range high at $0.352.
Dogecoin price has been on an uptrend for roughly a month, but the ascent seems to have evolved to a pattern that hints at a correction. Therefore, investors need to be aware of a short-term pullback for DOGE, which eventually results in a 50% climb.
Dogecoin price prepares for massive uptrend
Dogecoin price created three higher lows and two higher highs as it rallied 44% from September 29. Connecting trend lines with these swing points reveals the formation of a rising wedge. This technical formation forecasts a 19% descent to $0.207, obtained by adding the distance between the first swing high and swing low and adding it to the breakout point at $0.256.
However, investors can expect Dogecoin price to stabilize around the $0.236 support floor. The profits from the meme coin investors are eventually going to cycle to other dog-themed cryptocurrencies, out of which Dogecoin is a strong contender. Therefore, a potential spike in buying pressure around this barrier will likely trigger an uptrend for DOGE.
If this run-up manages to climb past the 50% Fibonacci retracement level at $0.273, it will confirm the start of a bull rally. In such a case, Dogecoin price will retest the $0.30 barrier followed by the range high at $0.352.
This ascent from $0.236 to $0.352 will constitute a 50% move.
DOGE/USDT 1-day chart
While things are looking dull for the meme coin, a breakdown of the $0.236 will indicate a weakness among buyers. If the resulting retracement falls below $0.225, the bullish thesis will face invalidation as it would create a lower low.
In this situation, Dogecoin price will retest the intended target at $0.207 and, in a bearish case, the range low at $0.194.