- Dogecoin price shows a lack of buyers despite bouncing from a critical demand zone.
- A retest of the immediate support level at $0.328 might propel DOGE up by 45% to $0.481.
- A breakdown of $0.224 will invalidate the bullish thesis.
Dogecoin price is grappling with key barriers. A breach from one of these will confirm its trend. DOGE is likely to head higher to retest another fundamental level.
Dogecoin price coils up
Dogecoin price is currently trading at $0.342 after multiple failed attempts at rallying higher. Despite its recent downswing, the meme-themed cryptocurrency does not show signs of buying interest, at least not like most altcoins.
Therefore, a minor pullback that interests sidelined investors should provide the oomph required for the upcoming run-up. If this were to happen, DOGE would likely retrace to the immediate support level at $0.328 or the demand zone stretching from $0.224 to $0.289.
A bounce from either of these levels could propel the meme coin to $0.481, the lower limit of a supply zone that ranges up to $0.515.
If this rally occurs from $0.32, Dogecoin price will soar 45%, but the upswing will be roughly 65% if it retests the said support area.
Investors should note that the resistance level at $0.399 will serve as a pitstop for this rally, where the buyers could book some profits or add to their positions.
DOGE/USDT 4-hour chart
The upswing narrative is intact even if Dogecoin price reenters the $0.224 to $0.289 support zone. However, a decisive 4-hour candlestick close below $0.224 will confirm the invalidation of the bullish thesis.
In that case, DOGE might retrace 5% to tag the swing low at $0.213, created on May 19.
