The $0.055 price level has been a reliable support for Dogecoin for quite some time. Even amid the current uncertainty in the crypto market, Dogecoin has managed to stay above this level.
On the daily chart, there’s a sign of buyer interest, which is seen in a lower price rejection candle. This is a positive indicator that suggests buying momentum is still strong. Can this spark a significant recovery for Dogecoin?
Is the Recovery Trend Targeting $0.0775?
- Dogecoin is currently trading within a range of $0.055 to $0.068.
- A recent bullish breakout from the upper trendline resulted in a 30% price increase.
- The daily trading volume for Dogecoin is $133 million, showing a 17% decrease.
Source-Tradingview
In the weekly chart, Dogecoin’s price has shifted from a downtrend to a sideways movement, particularly above the $0.055 support level. This support has proven strong over the past year, indicating significant buying interest at this price.
When assets move sideways after a significant decline, it often signifies an accumulation phase and a potential market bottom. While the $0.055 support is giving buyers confidence, there are two downward-sloping trendlines limiting their recovery efforts.
Currently, Dogecoin is trading at $0.059, caught in a narrowing range between a steep trendline and the solid $0.055 support. This tight range suggests an imminent breakout.
If the $0.055 support continues to hold, buyers may break the upper trendline, potentially triggering a 30% increase in the coin’s market value, reaching around $0.0775.
Is Dogecoin (DOGE) Price at Risk of Further Correction?
Despite having the support of the long-standing trendline and the $0.055 level, Dogecoin’s relatively weak response to a significant rebound suggests its bullish momentum might be fragile. If the overall market sentiment turns bearish, there could be enough pressure from sellers to breach these support levels. If Dogecoin closes the week below this crucial line, it might experience a more substantial decline.
Looking at technical indicators:
- Moving Average Convergence Divergence (MACD): Multiple crossovers between the blue MACD line and the orange signal line indicate that market participants are uncertain.
- Exponential Moving Average (EMA): The 20 EMA’s slope on the weekly chart is creating additional resistance against buyers.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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