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.
