Key Takeaways
- Dogecoin (DOGE)’s price rose to $0.06415, up by 0.99% despite Bitcoin’s downward trend causing a bearish market.
- Technical analysis suggests a potential further decline for DOGE, although there’s a chance of recovery.
- DOGE’s future trajectory is uncertain, but if it maintains above $0.0533, there’s hope for price increase.
In an exciting turn of events for Dogecoin (DOGE), the pricing has reached $0.06415. As of the time of writing, the price for DOGE is 0.99% higher than yesterday. In the midst of a bearish outlook in the cryptocurrency market caused due to Bitcoin (BTC)’s drop, this rise for DOGE is indeed a sight for the sore eye. Dogecoin has now entered a phase of correction and has recently peaked at $0.0838.
Technical Analysis
As seen in the graph, the reversal resembles the shape of a V and represents a 24% decrease since a fortnight. At this point, it is important to note that an absence of significant indication of reversal is a nod toward further decline for Dogecoin. In fact, there is a substantial chance of that happening in the current setting.
After all, a V-top reversal is mainly characterized by a robust wave of selling pressure within the financial market. The decline of Dogecoin, as supported by escalating trading volume, indeed serves as an added affirmation of sellers’ resolute intent to pursue lower price levels.
As of the time of writing, the value of DOGE is wavering slightly above the nearby support level at $0.056, under the influence of demand stemming from the reduced prices. It is also worth noting that following a steep decline, there is a likelihood that DOGE’s value will undergo a brief period of consolidation aimed at recovering from the selling pressure.
In the event that the market’s trajectory retains its bearing nature, DOGE sellers might endeavor to cross the most recent low swing point of $0.0533. If such a breach happens, it would signify a continuation of the existing downward trend. This would potentially propel the price towards $0.049 and, subsequently, $0.041.
Potential Recovery
The coin’s price trading below the daily EMAs (20,50,100, and 200) is indicative of a persistently bearish long-term trend. As can be seen in the graph, there is a negative crossover between the MACD (blue) and the signal line (orange), indicating ongoing selling pressure in the midst of this correction phase.
To summarize things, there is indeed a chance of potential recovery for Dogecoin, and at the time of writing, it has indeed exhibited an elongated bearish candle. This situation can indeed be credited to the downward movement of Bitcoin (BTC). In the event the currency manages to maintain its position above $0.0533, prospective buyers will need to surpass the peak value of the previously mentioned candle, which rests at $0.838.
Successfully achieving this breakout would provide significant support for a potential price increase, aiming to challenge the $0.0838 threshold of DOGE’s price. All in all, while the chances of DOGE’s consolidation exist, there is a chance of recovery in the future as well. How will things turn out in the future? Only time will reveal.
