- Dogecoin price retesting the $0.128 support level could complete a triple bottom setup, signaling a reversal.
- A bounce off this support level will likely propel DOGE to 27% to $0.163.
- A daily candlestick close below the $0.128 barrier will invalidate the bullish thesis.
Dogecoin price hints at a trend reversal as it approaches a vital support floor. A retest of this barrier could complete a bottom reversal pattern, kick-starting the uptrend for DOGE.
Dogecoin price faces a decisive moment
Dogecoin price has been stuck trading under the declining trend line since December 1, 2021. Additionally, DOGE continues to coil up as it gets stuck between this hurdle and a support level at $0.128.
Moreover, another retest of $0.128 will create a bottom reversal pattern known as triple bottom. This technical formation indicates that the downtrend for Dogecoin price is at an end and a new uptrend is around the corner.
Therefore, investors can position themselves to capitalize on this next run-up. As for the upside, DOGE will likely retest the weekly resistance barrier at $0.163. If the buy orders continue to pile up, the meme coin could extend and tag the $0.194 hurdle, bringing the total gain from 26% to 51%.
If such a development occurs, there is a good chance market makers will push Dogecoin price above $0.215 to collect the buy-stop liquidity resting above the equal highs.
DOGE/USDT 4-hour chart
The bullish outlook detailed above seems plausible but is dependent on the assumption that Dogecoin price manages to bounce off the $0.128 support level. Failing to see a bullish reaction could indicate a worsening situation for DOGE.
A daily candlestick close below $0.128 will invalidate the bullish thesis by creating a lower low. In this case, Dogecoin price could potentially crash 42% and revisit the $0.074 support level.