- Dogecoin price is consolidating inside a crucial support zone, extending from $0.21 to $0.23.
- A bounce off the $0.21 barrier could propel DOGE for a 27% gain
- If the $0.19 demand floor is breached, it will invalidate the bullish thesis.
Dogecoin price gave an uptrend second attempt on September 29 as it formed a local bottom. Since this point, DOGE has pierced a crucial support area but is struggling to push through.
Dogecoin price awaits directional bias
Dogecoin price rose 16% from September 21 and September 22 but faced a blockade at the demand barrier, ranging from $0.21 to $0.23. After an unsuccessful attempt, DOGE retested the range low at $0.19 and kick-started the second attempt. Despite the 15% ascent, the dog-themed cryptocurrency faces a slew of sellers just below $0.23. Moreover, the Momentum Reversal Indicator (MRI) flashed a red ‘one’ sell signal at 12:00 UTC on the six-hour chart. This technical formation forecasts a one-to-four candlestick correction.
Assuming the big crypto continues and makes a run at the $50,000, altcoins, including Dogecoin price, will rally with it. In such a case, if DOGE breaches through $0.23, it is likely to retest the 50% Fibonacci retracement level at $0.27.
This run-up would be a 27% ascent from the current position.
DOGE/USDT 6-hour chart
On the other hand, if Dogecoin price fails to flip the $0.23 barrier into the support floor, it will indicate a weak buying pressure. In such a case, DOGE might push lower and breach the $0.21 demand barrier.
A spike in selling pressure could knock DOGE down to $0.19 and even shatter it. Such a development would invalidate the bullish thesis and potentially trigger a downswing to $0.18 or $0.16.