- Dogecoin price pulls back to $0.06 after seeing rejection just below the $0.08 barrier on Monday.
- DOGE price points to $0.055 as a bearish confluence zone on the Fibonacci Projection Indicator.
- Invalidation of the bullish uptrend remains $0.048 with one caveat (read below).
Dogecoin price could be the best crypto to invest in 2022, still catching an early entry will be challenging.
Dogecoin price needs to do this
Dogecoin price is finally seeing the expected retracement after rallying an impressive 58% since the June 18 lows at $0.048 into the Monday, June 27 high at $0.078. The weekend outlook mentioned the potential for a pullback with targets in the $0.055 zone, as the notorious dog coin was beginning to show exhaustion-like symptoms amidst the Sunday afternoon consolidation. On Tuesday, June 28, the bulls have finally capitulated as profit-taking has gone a bit too far, triggering breakout traders to add fuel to the bearish momentum.
Dogecoin price currently trades at $0.067 as the $0.07 barrier was unable to maintain supportive ground. A Fibonacci Projection tool surrounding the initial drop from the Monday high at $0.078 into the steepest retracement point thus far at $0.073 forecasts a 261.8% Fib level within the same vicinity of the $0.055 region mentioned in the previous outlook as a probable pullback zone. If market conditions are genuinely bullish, traders can look for a bottom and continuation of the bullish trend to commence from the $0.055 region.
DOGE/USDT 15-Minute Chart
Thus, the invalidation for the uptrend scenario remains a breach below the June 18 low at $0.048 with one contingency. Early traders should not buy the low near $0.055. Let the price fall into the $0.055 barrier level and join a breakout realistically when you see the DOGE price hurdle back above $0.065, or the safest entry is a second break above the Monday high at $0.078.
If the technicals produce this outcome, the bulls should confidently re-route towards $0.25, to validate macro targets at $1.00. In contrast, if a V-shaped recovery does not occur near $0.055, a breach below the June 18 low of $0.048 will be inevitable. The bears could decimate the DOGE price to as low as $0.01 resulting in a 70% decrease from the current Dogecoin price.