- Dogecoin price has retraced 50% from its peak on May 8 at $0.739.
- A decisive close above $0.45 will confirm the of an uptrend.
- After a rally above $0.45, if DOGE breaks down $0.380, the bullish thesis will face invalidation.
Dogecoin price is currently in a no-trading zone per se and shows no apparent bias. The 71% drawdown has reduced to 50% after the recent recovery. However, a confirmed bullish prejudice has not developed yet.
Dogecoin price awaits break of critical level
Dogecoin price has retraced 50% from $0.739 on May 8 to where it currently stands, $0.374. Despite such a massive correction, DOGE vies higher highs. A 20% upswing to retest 50% Fibonacci retracement level at $0.739 seems like a no-brainer for the meme coin.
A break above the $0.739 will signal a massive shift in trend favoring the bulls. If this were to happen, Dogecoin price needs could be looking at a 25% advance to $0.560 or a 32% ascent to $0.597.
Although unlikely, if the bullish momentum persists, the meme-themed cryptocurrency might even rally to retest the all-time high at $0.740.
DOGE/USDT 12-hour chart
The bullish thesis is based on a pivotal assumption that Dogecoin price creates a swing high above $0.739. However, investors should be ready for a downswing that retests key support levels if DOGE faces rejection at the said level.
In such a case, a 15% downswing to $0.380 seems likely.
A breakdown of this barrier could result in a 13% sell-off to $0.331, coinciding with the 70.5% Fibonacci retracement level.
Under bearish conditions, the downswing could extend up to $0.282, which is roughly 37% from the 50% Fibonacci retracement level.