Since the cryptocurrency scene went green in mid-October, Dogecoin (DOGE) has seen a solid price climb, tracking the broader market. The top meme coin by market capitalization has recovered its highs from mid-August, but it is still just below a crucial barrier, meaning that its future move is still up in the air.
Dogecoin prices are expected to rise by 20%, but this level will prevent it.
Since the cryptocurrency market turned bullish, Dogecoin’s (DOGE) price has increased by about 30%, showing a consistent upward trend prior to a period of consolidation. An uptrend is currently resuming. However, there is a supply barrier for the coin that ranges from $0.076 to $0.080. This area caused the altcoin to drop by over 7%, clearing long positions worth up to $2.96 million.
Because sellers occupy the supply zone, it is an order block that functions as a degree of resistance. This implies that if an asset gets close to this zone, its price will inevitably correct unless buying momentum exceeds selling pressure.
Dogecoin’s price may continue to decline and possibly reach the $0.067 support level if the bulls’ buying pressure outweighs the bears’ selling momentum. In the worst scenario, the meme coin’s decline might go farther and allow it to test the $0.056 support floor or possibly return to the psychological $0.060 level. Such a change would represent a 20% decline from the present levels.
However, if buying pressure picks up, the Dogecoin price can still break through this order block and close above its $0.078 midline, indicating that the intermediate trend is still in place. The bearish argument will have been refuted by this.
In an extremely optimistic scenario, the gains might go to the $0.081 resistance level, which, if it were to reverse, might pave the way for a move to the psychological $0.090 level. This would represent a 20% increase over the present levels.
With green histogram bars indicating that bulls are driving the market, the Awesome Oscillator (AO) indicator is in positive territory. The Relative Strength Index (RSI), which is currently hovering slightly around 70 to offer bulls some breathing room after exhaustion from the previous overbought state of DOGE, is another encouraging indicator.