- Dogecoin price is likely to retrace to the 70.5% Fibonacci retracement barrier at $0.139 after the recent run-up.
- This pullback will set the stage for DOGE to advance 55% to $0.215.
- A breakdown of the range low at $0.121 will invalidate the bullish thesis.
Dogecoin price has witnessed a massive rally over the past week, allowing it to push above a swing high and collect liquidity. This move suggests that DOGE is ready for a retracement that will allow bulls to recuperate their strength for the next upswing.
Dogecoin price prepares for a new leg-up
Dogecoin price rallied 36% in roughly two weeks and set up a swing high at $0.173. This move collected the buy-stops resting above the double top pattern formed on January 19 and 20. Going forward, DOGE will likely retrace as investors continue to book profits.
A 10% pullback to the 70.5% Fibonacci retracement level at $0.139 seems plausible. Here, buyers can band together and form a platform before DOGE lifts off. The resulting uptrend will likely slice through the weekly resistance barrier at $0.163 and make its way toward the next hurdle at $0.194.
Market makers will likely extend this run-up beyond $0.215 and collect the buy-stop liquidity resting above the triple top pattern. In total, this move would constitute a 55% ascent and is likely where the next local top will form.
DOGE/USDT 4-hour chart
While things are looking safe for Dogecoin price, a breakdown of the $0.129 support level will sow doubt among sidelined buyers. A four-hour candlestick close below the range low at $0.121 will create a lower low and invalidate the bullish thesis,
A potential surge in selling pressure around this area could trigger a steep crash to $0.080 for the Dogecoin price.
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