Dogecoin price rallied 34% over the past 24 hours to set up a higher high.
A minor retracement is likely to be followed by another 27% ascent.
The bullish thesis will face invalidation if DOGE breaks below the July 20 swing low at $0.160.
Dogecoin price is currently undergoing a pullback after rallying extensively. This up move comes after months of a slow and non-volatile downtrend, painting a bullish picture.
Therefore, the newly developed optimism will likely continue, pushing DOGE to conquer swing highs.
Dogecoin price rallied 34% between July 20 and July 22 to set up a swing high at $0.214. This uptrend overshadowed the July 17 swing high at $0.205, revealing the bulls’ plans appreciate the meme coin’s market value.
Considering the 34% ascent, DOGE will likely pull back at least 17% to the stable support level at $0.179. A resurgence of buying pressure at this barrier will provide the fuel for the next upswing.
The resistance level at $0.227, roughly 27% away from $0.179, is the bulls’ target. Therefore, investors can expect the surge to face weakness around this level.
However, if the buyers manage to produce a decisive 4-hour candlestick close above $0.227, there is a chance that this ascent might extend another 12% to $0.259.
DOGE/USDT 4-hour chart
The optimism around Dogecoin price is warranted, but investors should keep a close eye on the incoming pullback. While DOGE will likely bounce off the $0.179 support level, a breakdown of this barrier will indicate a weak buying pressure.
If this retracement produces a decisive 4-hour candlestick close below the July 20 swing low at $0.160, it will invalidate the bullish thesis.