Will the ascending support trendline prolong the bullish trend and prepare a major correction in the near term?
Published 6 seconds ago
In the daily time frame chart, the Dogecoin price is carrying a short-term relief rally under the influence of the ascending trendline. Amid the last three weeks of uncertainty in the crypto market, the DOGE price has rebounded thrice from the support trendline preventing sellers from triggering a major correction. But can this support restore the bullish momentum for a bullish reversal?
Bullish Reversal at Key Support May Push DOGE Price to $0.065
- 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
Amid the recent sell-off in the crypto market, the DOGE price relief rally turned down from the $0.0685 mark. This reversal pushed the prices 9.3% down to hit the lower support trendline at $0.0625.
On September 4th, the coin price showed a neutral candle at this support, indicating the buyers are rejecting the supply pressure and preparing for another rebound. With a 0.76% intraday gain, the daily chart hints at the formation of a morning star candle pattern which is known as a reversal setup.
If the market buyers continue to witness buying pressure at the support trendline, the Dogecoin price rise by 5-6% to challenge the overhead resistance trendline. The downsloping trendline carries the current correction trend, and therefore buyers need to breach this barrier to get a better confirmation of sustained recovery.
Can Dogecoin Fall Back to $0.056?
While a support trendline is lifting the DOGE price up, these relief rallies are meant to restore the prevailing trend. Therefore, if the coin price breaks below the support trendline with a daily candle closing, the sellers will plunge memecoin’s market value by 12% to hit the $0.056 mark.
- Moving Average Convergence Divergence: A bullish crossover state between the MACD(blue) and signal(orange) accentuates a recovery sentiment in the market.
- Supertrend: A red film projected in the daily chart of the Dogecoin project the short-term trend is still bearish.
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.