Dogecoin is trading around $0.066, the highest trading volume level of the last 100 days. For massive gains to begin, it needs to sweep away any remaining liquidity below $0.057. FXStreet analyst Akash Girimath details this scenario that will double the price of the meme coin.
Meme coin prepares a comprehensive plan
Like many altcoins, Dogecoin fell 71% due to the LUNA-UST crash between April 25 and June 18. After the crash, the cryptocurrency market hit its bottom in June. Most altcoins, especially Bitcoin and Ethereum, have been on a recovery path since then. Meanwhile, its total market capitalization has once again crossed the $1 trillion threshold.
However, Dogecoin’s volume data shows that the highest volume was at $0.066. This resistance acts as a support and resistance level according to the price. Currently, DOGE is trying to bounce off this level. However, the market situation is worsening as Bitcoin drops below $22,749. Check out the next levels in detail in the technical section.
Dogecoin technical analysis
Point of Control (POC) is the price level for the period with the highest trading volume. From a technical standpoint, the deterioration of the POC is in the interest of the Dogecoin price and long-term investors. Because it allows DOGE to reclaim its sell-side liquidity below its equal bottoms at $0.057. According to the analyst, this also opens the door to a recovery.
It is the $0.057-$0.048 demand zone that sheds an optimistic light on this scenario. In combination, the pullback to $0.057 will serve as a perfect launching pad for Dogecoin price to start its next leg. The level that could block this potential rally is the midpoint of the 71% collapse at the $0.110 level. Assuming DOGE retests the aforementioned hurdle, it will provide a 90% increase.
While the idea of a 90% increase may seem appealing for DOGE, the downside needs to be taken into account. If the Dogecoin price fails to react to the demand zone due to oversold, there will be bears on the scene.
A daily candlestick near $0.048 invalidates this structure. It will also create a lower bottom and shift the narrative in favor of the bears. This development also puts an end to the ascension thesis. It could then cause Dogecoin to retrace to $0.045 or $0.040.
Latest Dogecoin news
As you follow on Kriptokoin.com, the Dogecoin team has announced the new version of the C library called Libdogecoin. We covered the details in this article.
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