- The Dogecoin price could experience a pullback before the next rise, eventually the MRI sends out a sell signal.
- An 8% retracement to the upper limit of the demand zone at $ 0.311 appears possible.
- A resurgence in buying pressure of $ 0.311 could push DOGE price up about 28% to $ 0.40.
The Dogecoin price has risen exponentially in the past 24 hours, breaking through an important supply zone and turning it into a support zone. While this move is positive, it needs to retest the newly formed demand barrier to confirm the presence of buyers.
If this succeeds, DOGE could soon initiate a new upward trend and approach the level before the crash on May 19.
Dogecoin course prepares for pullback
The Dogecoin price is up about 22% in the past 24 hours, breaking the immediate supply zone between $ 0.28 and $ 0.31. A correction is likely here given the extended rally and the sell signal shown by the Momentum Reversal Indicator (MRI).
This technical formation is forecasting a corrective move that suggests a decline to the immediate support level at $ 0.33. A larger number of investors taking profits could result in a breakout of $ 0.33 and a retest of $ 0.31, the upper bound of the demand zone.
Investors can expect a new return of buyers at $ 0.31 or $ 0.33, which would start a new uptrend.
The resulting upside momentum is likely to break the $ 0.37 level and make a run to the $ 0.40 resistance level.
DOGE / USDT 9-hour chart
However, should the retracement go further down and break below the $ 0.31 mark, DOGE will return to the demand zone between $ 0.28 and $ 0.31. While a consolidation within the mentioned range would only delay the upswing, a candlestick closing price in the 9-hour chart below $ 0.28 will make the upward thesis invalid.
In this case, market participants can expect the meme token to hit the $ 0.27 mark again.