- Dogecoin price is bouncing off a support level at $0.311 after a 17% drop.
- A quick 25% run-up to the 50% Fibonacci retracement level at $0.393 seems likely.
- If DOGE breaks below $0.264, it will invalidate the bullish outlook.
Dogecoin price has been on a slow descent since June 2 that took it below the mid-way point of a small range, indicating increased sellers. DOGE bulls’ intention of reverting to the mean is apparent as it trades above a demand barrier.
Dogecoin price dropped roughly 30% over the past week to a point where it is currently trading, $0.317. This crash extended 20% lower from the 50% Fibonacci retracement level at $0.393, suggesting a massive selling pressure.
However, as DOGE teeters on the support level at $0.311, the bulls are planning a comeback that could push the meme coin up to $0.393, which is roughly a 27% impulsive move.
While the scenario mentioned above is plausible, investors need to keep a close eye on the resistance levels at $0.350 and $0.380, which may slow down or halt the upswing.
Although a move above $0.393 is likely, it will be short-lived unless there is massive buying pressure.
DOGE/USDT 4-hour chart
Market participants must note that the bullish narrative will be valid until DOGE stays above $0.280. However, a decisive close below $0.264 will invalidate the optimistic outlook and kick-start a downtrend.
In this case, the meme-themed cryptocurrency might slide 7% to the subsequent demand barrier at $0.246.
