(Akash Girimath – FXStreet)
– Dogecoin price attempts recovery after slipping below volume profile’s POC at $0.066.
– A quick flip of $0.066 will confirm a 15% move to $0.078.
– A daily candlestick close below the $0.048 level will invalidate the bullish thesis.
Dogecoin price has completed its liquidity objective and is currently looking ready to move higher. This development could allow traders to realize short-term gains if played correctly.
Dogecoin price takes off
Although the Dogecoin price crashed 71% between April 25 and June 18, the short-term outlook looks much better. The volume profile for the last 100 days shows that the highest volume was traded at $066, which is named Point of Control (POC).
After the recent downswing, DOGE has swept this level and is currently attempting a recovery. If successful, investors can expect a minor uptrend to the recent swing high at $0.074 and, in some cases, a retest of the high-time-frame resistance level at $0.078.
In total, this move would constitute a 17% ascent from the current position.
While this outlook is bullish, investors need to acknowledge the sell-side liquidity resting below equal lows formed at $0.057. A failure to move past the $0.066 hurdle will indicate that market makers will push the Dogecoin price lower.
Since this level coincides with the demand zone, extending from $0.057 to $0.048, a bounce here is highly likely with the short-term targets remaining the same. In a highly bullish case, DOGE could retest the midpoint of the 71% crash at $0.110.
This move, however, would constitute a 90% upswing from $0.057.
On the other hand, if the Dogecoin price produces a daily candlestick close below the $0.048 level, it will create a lower low and will invalidate the bullish thesis. This development could see DOGE move down to $0.045 or $0.040 levels.