Dogecoin (DOGE) Looks for Dependable Support before 42% Surge
- DOGE price remains stuck inside a constricted range but might be preparing a 42% upswing.
- Dogecoin is searching for dependable support before the coin reverses the underperformance period.
- The meme-token will eye higher levels if DOGE climbs past $0.26.
Dogecoin (DOGE) might be ready for a 42% upside bounce to $0.26. However, the meme coin has to discover a reliable support barrier for the upward narrative to play out. The dog coin might present a ‘buy’ opportunity at discounted price levels before meme coin bulls launch a massive upswing.
DOGE Price to Secure Meaningful Foothold
The daily price chart has DOGE price printing a parallel channel, indicating range-bound conditions for the original meme coin. $0.26 seems the most challenging resistance, showing that bulls might be contemplating a 42% surge.
Though the governing chart formation indicated more upswing potential for DOGE, the coin might plunge lower to secure a meaningful foothold. The meme crypto has its initial defense line around the 21-day SMA near $0.17, then the prevailing chart formation’s low boundary at $0.15.
If Dogecoin manages to secure a dependable footing around the primary technical setup’s downward trend-line, DOGE buyers might expect a bounce, reversing the underperformance period. The meme token will encounter the first resistance area at 23.6% FIB retracement of $0.18, then a 50-day Simple Moving Average of $0.20. More hurdles will appear at 38.2% FIB retracement at $0.21.
DOGE might meet a challenging obstacle near the 100-day Simple Moving Average around $0.22, which matches the governing chart pattern’s middle boundary. Another headwind might emerge at $0.26, a level where 61.8% FIB retracement intersect with Momentum Reversal Indicator’s resistance.
If buy orders surge, DOGE price can aim higher zones. The first target would be the 78.6% FIB retracement area at $0.29, then the parallel channel’s upper boundary at $0.32. Meanwhile, investors should expect drawbacks by Dogecoin price for the coin to accumulate the surging momentum.
Declines before surges are a usual thing in the cryptocurrency world. Moreover, market analysts have predicted corrections in various assets to prepare for massive upswings in the upcoming bullish run in 2022.
Feel free to use the comment section below.