On September 12th, Dogecoin price witnessed a definitive break below a key support trendline that had been sustaining a relief rally for the past three weeks. Typically, such a breakdown would indicate a stronger bearish drive; however, the recovery sentiment prompted by Bitcoin price bounce from the $25,000 mark seems to have cushioned this memecoin’s descent, leading to a sideways trading pattern. The manifestation of short-bodied daily candles underscores the prevailing uncertainty and indecision among the traders.
Also Read: What Next For Top Cryptos – Dogecoin, XRP, And Pomerdoge In 2023?
Reversal from Key Resistance May Push Correction Trend below $0.06
- An overhead resistance trendline could pressure Dogecoin for a prolonged correction
- A breakout from the resistance trendline will set the coin price for an 18% rally
- The 24-hour trading volume in the Dogecoin coin is $169.5 Million, indicating a 5% gain
Source-Tradingview
Leveraging the recent reversal sentiment in the market, the Dogecoin price surged 5.3% from its psychological level of $0.06 in just six days, now settling near the $0.0621 mark. It’s particularly intriguing to note that this rally remained confined within the boundaries set by the candle of the September 10th breakdown.
This has solidified the candle’s high of $0.063 as a formidable resistance point, while its low at $0.053 has established itself as a robust support. Should the bullish momentum hold, we might see DOGE price ascend by about 4% to confront a descending resistance trendline. Historically, in the past two months, the coin price has been rebuffed by this dynamic barrier on three separate occasions.
This recurring pattern underscores a region where traders have consistently initiated sell-offs during bullish recoveries. If traders encounter substantial selling pressure around this trendline, it could set the stage for a more pronounced bearish move, potentially causing the coin to retreat by 11% to a value of $0.056.
Will Market Reversal Push DOGE Price to $0.077?
For those with a bullish perspective on Dogecoin, a strategic move would be to watch for a convincing breakout beyond the aforementioned resistance trendline. A breakout would realign this trendline as a potential support, paving the way for an upward move of approximately 18%, targeting a price point of $0.077
- Bollinger Band: A constricted Bollinger Band with both upper and lower boundaries leveling off indicates prevailing market uncertainty.
- Vortex Indicator: The bearish alignment of the VI+ (blue) and VI- (orange) slopes indicates that sellers maintain a dominant stance over the Dogecoin price.
