Earlier this month, Dogecoin hit a six-month high of $0.159 after witnessing a seven-day surge above $0.07. Unfortunately, exhaustion set in, and the price fell by over 50% to a low level of $0.0711. This level has provided support as the price slowly bounces back.
Dogecoin’s latest recovery shows a sign of strength in the market, although it is likely to face some hurdles on its way up. There’s a critical resistance level at $0.094, a confirmation level for a mid-term rally. The price is currently facing an hourly resistance level of $0.084.
It appeared to have found base support at $0.0711 following a double-bottom pattern formed on the current daily chart. This bullish pattern is yet unconfirmed at the critical resistance mentioned earlier. This setup could play out if the bulls continue to push higher.
An increase above the critical resistance will validate buying pressure in the market. This could trigger a bull run for DOGE. We can expect an impressive rally (potentially parabolic) once the price overcomes the previous seven-month high.
However, if the price plunges and the bulls fail to regroup quickly, a collapse beneath the yearly low of $0.05 would activate a continuation of the long-term bearish trend. And this time, the scenario might become uglier than before.
The coin remains the 8th largest crypto by market cap, with a 3% increase in the last 24 hours.
Dogecoin Price Analysis (DOGEUSDT): Daily Chart
While the $0.09 resistance level remains critical for Dogecoin to surpass, a surge above this level would allow buying toward the $0.11 resistance level, where the market collapsed in May. If this level does not reject price actions, the buying target would be $0.15.
In the opposite direction, Dogecoin is currently supported by $0.0711. There’s still support at $0.0611 in case of a dip. If these supports fail to provide a rebound level, there’s still hope for the bulls at $0.057. The last defense line for the bulls lies at $0.05.
Key Resistance Levels: $0.094, $0.11, $0.15
Key Support Levels: $0.0711, $0.0611, $0.057
- Spot Price: $0.082
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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This post first appeared on: NullTX