- Dogecoin price is consolidating in a tight range below the $ 0.273 resistance level.
- An explosive uptrend is likely to break the supply zone between $ 0.280 and $ 0.312.
- Should the buyers not have enough power and fall below the stable demand barrier at $ 0.230, this would invalidate the bullish thesis.
Dogecoin price is currently hovering below a number of resistance levels that are preventing it from rising. A quick break through these barriers is quite possible given the consolidation that DOGE is currently going through.
Dogecoin price squinted at breakout
The Dogecoin price rose 42% in one fell swoop between August 6th and 8th. This explosive rise came after a lengthy sideways movement. At the time of this writing, DOGE is also consolidating below the $ 0.273 resistance level.
While a breakout from this soaring price move can go either way, investors can expect a bullish breakout. This tendency is due to the overall structure of the major cryptocurrencies that is leaning towards buyers.
While the upswing seems plausible, it is not obvious due to the supply zone between $ 0.280 and $ 0.312. A close above $ 0.312 on the 12-hour chart suggests buyers are rebounding. This move opens the way to the next upper limit at $ 0.328.
That increase from $ 0.257 to $ 0.328 would translate into a 25% increase in the Dogecoin price.
DOGE / USDT 12-hour chart
Even if the upward move looks a bit constructed, the DOGE could fail to break out of the supply zone between $ 0.280 and $ 0.312. Failure would indicate weak buying pressure and allow the bears to flourish.
In such a case, investors should expect a decline to support at $ 0.230. While this downturn does not detract from the optimistic view, it could delay the rise.
However, should the bears break the $ 0.230 level, it would invalidate the bullish thesis and potentially cause a plunge to $ 0.213.