Will Dogecoin Bounce Back?
Date: 2024-01-22 Author: Dima Zakharov Categories: BLOCKCHAIN
Critical Crossroads for Dogecoin
In light of the bearish turn testing the 100-day moving average, Dogecoin's price trend highlights a crucial moment for the meme coin. Additionally, with a double bottom reversal on the daily chart, buyers are hopeful for an upturn.
However, with the intention to undermine the breakthrough, the recent dip signals a potential correction amid a broader market threat. The price of DOGE, supported at $0.082, raises questions about whether buyers will return.
Bullish Breakout Signals
In the event of a bullish breakout above the short-term resistance line, DOGE's price demonstrates a bullish reversal. Furthermore, the breakout event justifies the recent 8% drop over two days, resulting in two bearish candles.
Currently, Dogecoin displays a lower price deviation in bearish candles, suggesting a potential reversal after retesting. Moreover, DOGE's price is trading at $0.08347 with an intraday drop of 2.30%.
Despite the decline, the price remains above $0.082 and forms a long tail, indicating a bullish attempt to continue the rally.
Technical Indicators
- MACD Indicator: A bullish crossover between MACD (blue) and signal (orange) reflects a resurgence in the uptrend. If the indicator manages to surpass the middle line, buyers will gain additional momentum for the bullish trend continuation.
- Moving Average Lines: Dogecoin's price fluctuating between the 50 and 200-day moving averages suggests that the short-term trend is currently sideways. With the expected rise, buyers will overcome the 50-day moving average, offering them an additional support point for sustained growth.
Will Dogecoin Survive this Dip?
Following the bullish reversal from the Fibonacci 61.8% correction level around $0.0748, Dogecoin broke through the nearest resistance of the descending trendline. This breakthrough above the resistance that led to the recent 6-week decline indicates a potential end to the correctional trend.
If DOGE's price holds above the $0.082 mark, buyers could rise by 28% to retest the recent swing high at $0.106. Conversely, if the retesting phase falls below the descending trendline, a false scenario will amplify selling pressure among traders.
