Dogecoin price broke below the $0.0705 low range and recovered above it, suggesting a rebound rally may be brewing.
Traders can expect DOGE to retest the range high at $0.0946, triggering a 23% rally.
Invalidation of the bullish thesis will occur below the $0.0705 support level.
Dogecoin price has been in a tight range for the last few months . The last sweep of the lower range was a buy signal for those paying attention, as DOGE compensated for recent losses . Now, the meme coin is bending upwards to continue this trend higher.
Dogecoin price is trying to make an upward move
Dogecoin price has been stuck between buying a peak at $0.0946 and selling a peak at $0.0705 for the past four months. In early March, DOGE fell below the lower bound, but recovered above that level the following week, indicating the presence of buyers.
A continued bullish narrative from the end of Bitcoin could fuel the rally for Dogecoin price and trigger a move to retest the buy top at $0.0946 . This move will create a 23% gain for DOGE holders.
In the event of a bullish high, Dogecoin price could try an extension of this move and tag the $0.106 hurdle, taking the total gain to 40%.
Additionally, the number of new addresses joining the Dogecoin network doubled from 15,000 to 30,000 between March 1 and March 8. This increase gives confidence to the bullish thesis. However, these addresses have since dropped to 16,000.
While things look optimistic for Dogecoin price, a break of the selling peak at $0.0705, turning it into a resistance level, would invalidate the bullish thesis.
In such a case, Dogecoin price could decline and retest the $0.0645 support level.