- Dogecoin price lost 14% on January 5th as crypto markets collapsed.
- This downtrend appears to be a fractal in the game, suggesting a 20% rebound is likely.
- A four-hour candlestick close below $ 0.151 will create a lower low, invalidating the bullish thesis.
Dogecoin price has come under heavy pressure as it hovers around a crucial demand barrier, the collapse of which could lead to a massive crash. However, the January 5th decline appears to have resulted in a fractal suggesting a bullish outlook.
Dogecoin price at the turning point
Dogecoin price fell 14% on January 5 as crypto markets followed in Bitcoin’s footsteps. The correction for DOGE appears to have created a bullish fractal observed after the December 3rd crash.
Said fractal contains a triple bottom pattern followed by a drop below the said setup to collect liquidity, resulting in a massive surge. The rally last attempt was massive due to the tweet from Elon Musk, but investors can expect a small rally this time around.
Assuming the bullish narrative shows, Dogecoin price will retest the immediate resistance barrier at $ 0.176 after rising 14%. Clearing this level will allow DOGE to mark the 50-day Simple Moving Average (SMA) at $ 0.187. This step will represent an advance of 20%.
DOGE / USDT 4 hour chart
Things look bleak for the Dogecoin price due to the recent crash. Hence, the downturn could continue without giving the bulls a chance to make a comeback. If such a scenario occurs, DOGE could slide down and hit a four-hour candlestick close below $ 0.151.
This development will lead to a lower low, invalidating the bullish thesis. In this situation, Dogecoin price could hit the December 4th swing low of $ 0.129 again.