(Akash Girimath – FXStreet)
– Dogecoin price has bounced off the POC at $0.066 and rallied roughly 5%.
– This move could push DOGE up to a high time frame resistance level at $0.078.
– Investors must factor in the potential liquidity sweep below $0.057 before flipping bullish on the meme coin.
Dogecoin price is rallying while some altcoins are rallying. This development is no doubt bullish for DOGE it could also serve as a warning sign that this move could reverse quickly.
Dogecoin price gets ahead of itself
Dogecoin price seems to be taking a bullish route after bouncing off the stable support level at $0.066, which is also the volume profile’s point of control (POC) for the last 100 days. This level is the highest traded volume point, hence, functions similar to a support or resistance level.
While altcoins took a hit over the last 12 hours, DOGE seems to have absorbed the selling pressure and has reversed the trend and even rallied 5%. While this does seem bullish, investors need to pay close attention to Bitcoin, which shows a bearish bias.
Hence, this uptrend for DOGE could be a long squeeze. As mentioned in previous articles, a retracement in Dogecoin price to collect the sell-side liquidity resting below equal lows formed at $0.05 seems like a logical move.
Once the liquidity is collected, investors can flip their bias favoring bulls and ride the rally that emerges. The said uptrend is likely to push DOGE through the POC at $0.066 and the $0.078 resistance level and reaches its target at $0.11. This move, in total, would constitute a 90% gain.
While altcoins took a hit over the last 12 hours, DOGE seems to have absorbed the selling pressure and has reversed the trend and even rallied 5%. While this does seem bullish, investors need to pay close attention to Bitcoin, which shows a bearish bias.
Hence, this uptrend for DOGE could be a long squeeze. As mentioned in previous articles, a retracement in Dogecoin price to collect the sell-side liquidity resting below equal lows formed at $0.05 seems like a logical move.
Once the liquidity is collected, investors can flip their bias favoring bulls and ride the rally that emerges. The said uptrend is likely to push DOGE through the POC at $0.066 and the $0.078 resistance level and reaches its target at $0.11. This move, in total, would constitute a 90% gain.