Forecasting Dogecoin’s [DOGE] potential to bounce back from this level

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

  • Dogecoin strived to bounce back after a rising wedge breakdown, can it find renewed buying pressure?
  • The meme-coin marked a slight uptick in its social dominance.

Owing to the broader market fallout, the slip below the $0.173-level in December last year positioned Dogecoin (DOGE) to find fresher lows to date. This phase led the dog-themed crypto to match its yearly lows in June and September this year.

The sellers have exhibited strong reversal inclinations from the six-month trendline resistance (yellow, dashed). The recent bearish pull has realigned the altcoin below its 20 EMA (red) and the 50 EMA (cyan) to depict a selling edge.

A sustained close below the $0.057 level can set the scene for an extended bearish pull. At press time, DOGE was trading at $0.057, down by 5.4% in the last 24 hours.

DOGE saw a patterned breakdown, can the buyers stop the bleeding?

Source: TradingView, DOGE/USD

The bearish pressure rekindled at the long-term trendline resistance. Consequently, the resultant reversal has kept DOGE bulls under control. The $0.0607 zone highlights the high liquidity area that the bulls failed to uphold over the last few days.

Given the recent tendencies of DOGE to revive from the $0.057 level, the buyers would look to induce a rally. But a sustained decline below this level could expose the crypto to a near-term downside before a revival. In these circumstances, DOGE could test the $0.048-$0.052 range before a likely bullish rebuttal.

An immediate reversal above the $0.057-mark would position DOGE to test the trendline resistance in the $0.062 zone.

Nonetheless, the buyers should look for the RSI’s close above the midline to gauge the chances of a bull run. Furthermore, the CMF’s higher troughs bullishly diverged with the price action.

Source: Santiment

With its social dominance witnessing a slight surge since its September lows, DOGE has struggled to drive up its price over the past month.

Should the price action follow, the buyers would look for a rebound from its immediate support. Moreover, DOGE’s Reddit social active users marked a significant spike over the last few weeks.

Source: Messari

All in all, DOGE stood in a dicey situation. Its current technical readings flashed a bearish edge with hopes of a near-term recovery. A sustained close above the $0.057 level can confirm this narrative. In either case, the selling triggers and targets would remain the same as discussed above.

Finally, the dog-themed coin shares a 43% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.


*