In today’s price action, the popular meme coin shows breakthrough signs indicating that it is about to move above its current value within a strong support zone.
Given that this has a direct chance of happening, the movement will lead to an exponential uptrend that will make mincemeat of immediate price barriers.
Without much effort, the price movement already buoyed by the robust support zone is expected to be explosive and take charge of the transaction activities independent of any bearish influence for the trading period.
DOGE Price Ready for Break Out
Between March 13 and 28, the price of Dogecoin rallied by 40% to set up a high of $0.153. This huge upward trend establishes a robust demand zone that helps to maintain the positive price action.
The support level is set from $0.137 to $0.127, which serves as a springboard for the DOGE value to hover around it. Meanwhile, any further action above the price mentioned above range is likely to trigger a bullish rally.
The bullish action will necessitate more market activity for Dogecoin by stimulating market value and price consolidation, thereby pushing up the price of the meme coin.
However, such scenarios are often followed by resistance hurdles at $0.163 and $0.194, as the first barrier needs to be overcome to kickstart another positive price action. Overcoming these barriers will allow market actors to push Dogecoin beyond the $0.194 mark to complement the token’s liquidity further.
This new development points to the formation of a local top which might be where the price upside will be capped for the meme token. And the price upside determines how the DOGE will be traded and the forecasted value to be attained.
The current price action under assessment would be part of the 50% gain making up a part of the current situation at $0.144. This is where the market actors would start expecting gains from the market, which ultimately led to price retracement.
DOGE/USD 1-hour chart. Source: TradingView
Irrespective of the bullish outlook for the leading meme coin, any sudden crash in the value of Bitcoin means that the DOGE will experience no further push backs for the price to stabilize in time. Events like this translate to having a daily candlestick below $0.127 will establish a lower low and rubbish the bullish theory already made for price recovery.
Moreover, should such development persist, it would result in another further decline for Dogecoin down to the $0.109 support zone, which is not enough to maintain any sustained bullish trend from a technical point of view.
To get a hold of the market, the DOGE is expected to play its part in so far as positive price action is concerned and avoid any untoward activities that can give the bears a tiny foothold.
As important as keeping the bears at bay is to hope that Bitcoin continues to maintain its current value and further move above it, a Bitcoin price crash will be detrimental to the uptrend that Dogecoin is looking to strengthen.