- Dogecoin price hints at a slight retracement at the $0.082 support level before a 50% rally to $0.125.
- The trade data shows that the bulls have some leg room up to $0.133, which further supports the bullish thesis.
- A four-hour candlestick close below $0.073 will invalidate the bullish outlook for DOGE.
Dogecoin price reveals an interesting setup that could trigger massive returns for investors. This uptrend will begin after a slight pullback that will allow market participants to accumulate discounted DOGE.
Dogecoin price gears up for a launch
Dogecoin price has been consolidating around the $0.087 barrier for almost three weeks. The May 26th swing low at $0.074 marked the end of the gap and triggered a rally above the $0.082 hurdle.
This bounce is currently struggling against the $0.087 hurdle, but is likely to return soon given the oversold state of Bitcoin price. Therefore, investors can expect Dogecoin price to correct to the immediate support floor at $0.082.
Although an uptrend could potentially start here, market participants should keep an open mind for a further retracement to $0.076.
A rebound from either of these levels would likely catalyze a massive move higher that would propel Dogecoin price towards the intermediate resistance barrier at $0.101, which also coincides with the 200 four-hour moving average.
However, the bulls are expected to extend this move to the high of $0.125, bringing the total gain to 52%.
DOGE/USDT 4-Hour Chart
IntoTheBlock’s Global In/Out of the Money (GIOM) model supports the bullish outlook for Dogecoin price. This index shows that the immediate group of underwater investors who bought around 19.46 billion DOGE are present at $0.133.
Around 358,000 addresses that bought the coin meme here are “out of the money” and are likely to break even and add selling pressure if Dogecoin price heads into this area. Therefore, the rise of DOGE is limited to $0.133.
Regardless of the bullish outlook and on-chain metrics, if Bitcoin price makes a U-turn, Dogecoin price will quickly follow. In such a case, a four-hour candlestick closing below $0.073 will invalidate DOGE’s bullish outlook.
This development could see Dogecoin price revisit the $0.062 support floor, where buyers could regroup and plan for another comeback.