- Dogecoin price struggles with the resistance level around $ 0.213.
- Breaking this barrier could result in a 20% increase to $ 0.255.
- However, should the DOGE bulls fail to defend the $ 0.168 level, this would invalidate the bullish thesis.
The Dogecoin course is currently battling an important resistance level whose breakthrough would open the way for further price gains. However, the upward trend appears to be limited due to a massive supply zone.
Dogecoin price contemplates breakout
Dogecoin price has hit three lower highs since June 25, indicating a weakening upside momentum. If you draw a trend line along these price marks, you will see a decreasing resistance at which DOGE is currently located.
Interestingly, the resistance level at $ 0.213 coincides with the supply barrier mentioned above. A closing price on the 9-hour chart above this confluence would therefore signal the presence of the bulls and pave the way for another uptrend.
However, investors should note that the Dogecoin price is expected to rise 20% by the time it hits the supply zone between $ 0.255 and $ 0.290.
In some cases, this spike could retest the $ 0.273 resistance level, representing a 30% rise from $ 0.213.
DOGE / USDT 9-hour chart
On the other hand, if the DOGE bulls fail to break the falling trendline and the horizontal resistance at $ 0.213, a setback is likely to occur.
The $ 0.187 and $ 0.182 support levels are the most likely candidates to end the correction. However, if the selling pressure continues, the Dogecoin price could hit the $ 0.168 mark.
While a reversal is likely from this area, market participants should be aware that a breach of said demand barrier will invalidate the rally and potentially trigger a downturn to $ 0.157.