Dogecoin price has been consolidating for about six months without any noticeable rise. While this price action is annoying, DOGE seems to be in an accumulation phase just like the Shiba Inu before breaking out.
Dogecoin price has stayed below the 50% Fibonacci extension level, or $0.45, for about six months. This consolidative price action for DOGE seems to be changing as buyers are ready to push the meme coin higher.
Since October, Dogecoin price has been higher highs (movement where it doesn’t break above the high, but with some up and down price action in between) and higher lows (movement where it doesn’t go below the lowest point, but rises with some up and down price action in between) shows an upward trend. For this uptrend to continue, DOGE must surpass two resistances at $0.31 and $0.36. Turning these resistance levels into support will confirm the resumption of buyers and push Dogecoin price to $0.45, which coincides with the 50% Fibonacci retracement level. The mentioned rise will provide a 70% gain from the current position.
In such a bullish situation, investors can expect DOGE to turn the $0.45 high into a launching pad, which could trigger a massive rally from $0.75 to 2021 highs.
Regardless of the short-term bullish outlook, if Dogecoin price fails to break $0.31 or $0.36, it could face either weak buying pressure or an upward selling pressure. Either way, a drop towards the $0.19 support level could occur. If the Dogecoin price bottoms below this support, the bullish thesis will be invalidated.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.