- Dogecoin price has been on the downtrend since Aug 16 and is ready for a reversal.
- A successful rebound from the demand zone between $ 0.262 and $ 0.281 indicates a resurgence in buyers.
- If DOGE falls below $ 0.240, the bullish thesis will be void.
Dogecoin price hit an impasse after hitting a swing high on Aug 16. Since then, DOGE bulls have been nowhere to be seen, resulting in a downturn. However, the retracement pushed the meme coin into critical support area that is likely to trigger a rally.
Dogecoin price prepares for an explosive upswing
Dogecoin price fell about 25% from the August 16 high of $ 0.352. This descent put DOGE in a demand zone between $ 0.262 and $ 0.281. This pullback was faced with a sudden spike in buying pressure which has currently propelled Dogecoin price 12% to where it is now.
Going forward, investors can expect the meme coin to continue its rally until it hits the resistance level of $ 0.328. A critical closing price above this critical barrier opens the way to $ 0.40.
However, in some cases, the rally could stall at the $ 0.368 resistance level. The increase to $ 0.40 represents an increase of 35% from the current position.
DOGE / USDT 1-day chart
On the other hand, if buyers fail to keep Dogecoin price above the demand zone, which extends from $ 0.262 to $ 0.281, it will reveal weak buying pressure and increased seller activity. Such a move will delay the recovery.
However, a critical close below $ 0.240 will invalidate the bullish thesis and if the crash continues, DOGE could rise to $ 0.230.
