Why Dogecoin [DOGE] price is likely to retrace before a potential 50% run-up
Dogecoin price is slowing down as it approaches a resistance level after hitting its target. This confluence combined with investors booking profit is likely to trigger DOGE to pull back to stable support levels.
Dogecoin price crashed nearly 85% from its all-time high and is currently hovering around $0.16. The price action of this dog-themed crypto from 29 September, 2021, to 23 March, formed three distinctive lower highs and lower lows. Connecting these swing points using trend lines reveals a falling wedge pattern.
This technical formation forecasts a 34% upswing, obtained by adding the distance between the first swing high and swing low to the breakout point. The breakout occurred on 24 March at roughly $0.130, which puts the target at $0.178.
Due to the increase in volatility, the Dogecoin price managed to tag the aforementioned target but failed to maintain its momentum. As a result, DOGE began its corrective move. So far, DOGE has dropped to $0.16 and from the looks of it, there is more pullback yet to come.
The stable support level at $0.14 seems like the best option to absorb the selling pressure while allowing sidelined buyers to scoop up DOGE at a discounted price. Such a development is likely to trigger a bull rally for the Dogecoin price that propels it to $0.178; in a highly bullish case, the $0.216 hurdle.
Put together, this upswing would constitute a 50% gain and is likely where the upside for Dogecoin price is capped. Therefore, patient buyers will have more to gain by waiting for a perfect retest.
DOGE Perpetual Futures | Source: Tradingview
Supporting the bullish move for Dogecoin price is the recent spike in on-chain volume from 689 million to 5.95 billion in the last three days. This explosive uptick in
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