The price of Dogecoin may have been below the previous gains from last week, but it has yet to slump into a bearish zone.
For the price to be acceptable, market players expect the DOGE to initiate another price rally to retest the previous price target it could not achieve during the last trading session.
The past couple of days has been a bullish period for the meme cryptocurrency. It enjoyed a tremendous amount of activity with an increased transaction volume, which helped maintain its price momentum.
Price Uptrend Can Still Be Relaunched
Assessing the price action for Dogecoin since last May shows that there have been four lower highs and five lower lows set up during this period, which, once linked using trend lines, indicates the formation of a falling wedge.
This technical explanation for the price of the meme cryptocurrency predicts a 75% upswing to $0.216; this value is determined by combining the distance between the first high uptrend and the low of the breakout point, set at $0.123.
On March 21, Dogecoin’s value surpassed the falling wedge’s higher trend lines, standing at $0.123 with a 21% rally. However, in the first week of April, the price of Dogecoin appears to be experiencing some difficulty in breaching the same trend line.
Despite the 28% rally, there was intense profit-taking alongside a brief flash of the BTC value, resulting in the gains being unchanged.
The previous action has resulted in the DOGE hovering around $0.151, suggesting a further upward bound movement by 42%. In theory, if DOGE can hit its target, a local top may likely be formed around the high swing.
Should the buying pressure persist, this would likely propel the price of Dogecoin to a further $0.322 resistance hurdle, tanking the total cost to 113%. This event would prove to be the catalyst for a further uptrend in the price of the meme coin.
DOGE/USDT 1-day chart. Source: TradingView
The General Price Outlook
The overall price outlook for the leading meme coin is bullish from the point of view of an active swing trader, but a sudden downward price fluctuation would spell doom for the price outlook.
In such a scenario, the appearance of a weekly candlestick that is below $0.11 will rubbish the bullish thesis for the price of Dogecoin.
This event would pave the way for the DoGE to explore the other levels that are considered low, where long-term investors may likely plunge in to take a chance.
The above analysis for Dogecoin neither indicates a bullish rally nor highlights a bearish trend; it simply assesses the possibility of an upward trend in the value of the meme token alongside the likelihood of a decline in the price of the token.
Dogecoin’s price action is subject to factors like investors’ risk appetite, general market dynamics, and the inflow of funds.
For now, the value of the meme crypto may recover its previous gains or slump down further.
