Dogecoin (DOGE) Forms Bullish Pattern
Date: 2024-01-09 Author: Dima Zakharov Categories: BLOCKCHAIN
Dogecoin Bounces Back After Sharp Decline
Technical analysis of the daily timeframe reveals that DOGE's price exited an ascending parallel channel on November 6, 2023. This breakout led to a peak price of $0.108 on December 11. Following this high, the cryptocurrency's value began to decline, reaching a minimum of $0.074 recently, forming a lower wick. This confirmed the support level at the 0.618 Fibonacci retracement and the resistance line of the ascending channel.
Despite the rebound, the daily Relative Strength Index (RSI) shows no positive signs, with the indicator remaining below 50 and continuing to decline.
DOGE Price Forecast: Has the Local Bottom Been Reached?
Six-hour timeframe indicators suggest that DOGE's price is poised for a significant rebound, attributed to both price action and RSI readings. The Relative Strength Index has formed a significant bullish divergence, often preceding upward movements. Additionally, a "double bottom" pattern has emerged on the chart, considered a bullish pattern. The combination of these factors, along with long lower wicks, supports the possibility of a trend reversal to the upside.
If the upward movement continues, the price of Dogecoin could increase by 13%, reaching the descending trendline resistance at $0.089.
However, despite this bullish outlook, a drop below the $0.074 minimum could lead to a 15% correction towards the nearest support level at $0.067.
