On Saturdays, the cryptocurrency market showed stability with only minor fluctuations, defying expectations after the fourth bitcoin halving was carried out successfully. The majority of significant coins, including Dogecoin, have been exhibiting a consolidation pattern recently, suggesting no definitive control from buyers or sellers. However, the fact that Dogecoin’s price remains above the 50% mark of its recent downtrend is a positive sign, hinting at an overall bullish trend for this digital asset.
How 50% Fibonacci Level is Shaping Dogecoin’s Market Strategy
Over the past three weeks, the Dogecoin price has seen an ongoing correction, evident in the downward-sloping trendline on the daily chart. This bearish trend began after the price peaked at $0.228, causing a significant drop to a low of $0.13 – a 43% decline from its previous high.
Although Bitcoin’s price has stayed strong above the $60,000 mark, Dogecoin’s price bounced back above its 50% Fibonacci retracement level at $0.143. In essence, this Fibonacci level serves as an essential support for buyers to regain their bullish energy during significant market downturns.
For over a week, the DOGE price has shown several instances of buyers rejecting lower prices at around $0.143. This pattern indicates that these buyers are actively defending this support level. If the expected price surge following the Dogecoin halving event materializes and lifts the altcoin market, then DOGE is in a favorable position for a bullish turnaround.
After a 50% pullback, the market’s bounce back will give buyers the confidence to attempt breaking through the previous resistance trendline again. Once this barrier is breached, it will indicate that the current bullish trend will persist and drive the DOGE price up towards $0.22. However, there may be some resistance at the intermediate level of $0.2.
Technical Indicator
- Exponential Moving Average: An analysis of the daily chart shows the 50- and 100-day EMA acts as dynamic resistance and support for the DOGE price currently in consolidation.
Moving Average Convergence Divergence: The MACD (blue line) and the signal line (orange) have undergone a significant bearish crossover, with no indications of an imminent bullish reversal as of yet.
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2024-04-20 18:07