DOGE poised for 25% upswing despite headwinds
- Dogecoin price is grappling with the TD Sequential indicator’s State Trend Resistance at $0.332.
- A rejection at this level might see DOGE retrace 10% before taking another jab at the upswing.
- If the bullish scenario persists, the local top at $0.414 seems to be an area of interest for the bulls.
Dogecoin price shows hindrance as it tries to overcome a resistance barrier. A minor pullback after rejection seems likely before the bulls kick-start an upswing.
Dogecoin price faces blockade
Dogecoin price is currently faced with the Tom DeMark (TD) Sequential indicator’s State Trend Resistance level at $0.332, preventing it from surging higher.
A decisive close above this level might invoke a potential sell signal from the TD Sequential indicator in the form of a green nine candlestick, which forecasts a one-to-four candlestick correction.
If this scenario comes to pass, investors can expect the Dogecoin price to find support on the demand zone extending from $0.262 to $0.302. Here, the buyers could give the 25% upswing to $0.414 another try.
On the other hand, if the buying pressure continues to pour in, then DOGE might ignore the threat of reversal and proceed higher to hit its intended target at $0.414.
DOGE/USDT 4-hour chart
Adding a tailwind to the bullish narrative is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows a lack of resistance barriers.
Roughly 38,700 addresses that purchased 735 million DOGE are “Out of the Money.” Hence, clearing this level will put Dogecoin price on a path of least resistance to retest its recent swing high at $0.414.
DOGE IOMAP Chart
Regardless of the technicals, a potential spike in selling pressure that pushes Dogecoin price below $0.285 would question the bullish momentum. However, a decisive 4-hour candlestick close below $0.262 would invalidate the bullish thesis and trigger a 13% downswing to $0.226.