The support trendline breakdown hints at a longer correction trend in DOGE price. Time to sell?
Published 6 seconds ago
Amid the rising uncertainty crypto market, the Dogecoin price found stability around the $0.062 mark. Drawing strength from an ascending support trendline, DOGE has offered its holders a semblance of hope, with several rebounds off this dynamic line providing minor relief in the daily charts. Yet, today’s altcoin market witnessed a significant outflow and showed a bearish breakdown below this key support. Will the breakdown lead to extended correction in this popular memecoin?
Also Read: DOGE Price Prediction: Dogecoin Targets $0.07 After Morning Star Reversal
Support Trendline Breakdown Hints DOGE Price Fall to $0.056
- A morning star candle at the support trendline hints bullish swing in the near-term
- A bullish breakout from the overhead trendline may push the DOGE price above $0.07
- The 24-hour trading volume in the Dogecoin coin is $215.5 Million, indicating a 19% gain
Source-Tradingview
Earlier today, Dogecoin recorded a 6% dip, navigating its way below the pivotal support trendline. Such a move typically grants sellers an enhanced edge, pushing the coin further into bearish territory. Despite this, the daily candle highlights a stark rejection near the $0.06 threshold, a testament to buyers jumping in at these lower price points.
This rising demand may pave the way for a retest phase, seeking to determine if the now-breached support can reestablish itself as a formidable resistance.
By the press time, Dogecoin stands at $0.061. If it remains under the shadow of its former support, projections indicate a potential descent to $0.056, which could translate to a further 8.5% depreciation.
Can Dogecoin Rise Back to $0.068?
If the surge in buying, evident from the lower rejection tail, manages to propel prices above the previous support trendline, we might be witnessing a classic bear trap. Such a development could amplify buying sentiments, potentially driving Dogecoin towards the $0.068 mark
- Average Directional Index: An uptick in the ADX slope indicates the sellers have the momentum to potentially drive a more pronounced decline
- Exponential Moving Average: The 50-day EMA offers dynamic resistance during bullish bounces.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
