Dogecoin Price Forecast: DOGE shows promise of a bounce amid worsening market conditions

• Dogecoin price stabilizes after a retest of the $0.0713 support level.
• A bounce off this barrier could trigger a quick 7% rally to $0.0784, but it could extend all the way to $0.0916.
• A decisive breakdown of the $0.0688 support level will invalidate the bullish thesis for DOGE.

Dogecoin price seems to be done with sliding lower as it approaches a stable barrier. The lack of bearish momentum mixed with a spike in buying pressure at a critical junction could be the sign that a DOGE reversal could be on its way.

Dogecoin price needs to make a decision 

Dogecoin price shed 26% after failing to push through the $0.0916 hurdle and formed a local bottom around the $0.0689 support level. As sidelined, buyers stepped in, the recovery rally kickstarted, pushing DOGE up by 7% so far.

As Dogecoin price trades at $0.0738, investors can expect a continuation of this trend over the weekend and into the next week. The short-term target is $0.0784, which is roughly 7% away from the current position. But in a highly bullish case, DOGE could extend all the way up to $0.0916.

If successful, this Dogecoin price move would constitute 25% gain for the DOGE holders.

DOGE/USDT 1-day chart

On the other hand, if the market outlook worsens, Dogecoin price could tank along with Bitcoin. If DOGE flips the $0.0689 support level into a resistance barrier, it will create a lower low and invalidate the bullish thesis. 

This development could see Dogecoin price crash and tag the March 8 swing low at $0.0625.