As a seasoned crypto investor, I’ve seen my fair share of market corrections and volatility. The recent downturn in the market took a toll on many assets, including Dogecoin (DOGE). But Tuesday’s rebound in Bitcoin price brought some relief to the altcoin market, especially for meme coins like DOGE.
In simpler terms, the correction phase in the cryptocurrency market paused on Tuesday due to Bitcoin‘s price bounce back from its $60,000 support level. This recovery led to a new surge in the altcoin market, significantly impacting volatile coins like Dogecoin. The meme coin DOGE has experienced a 7.3% increase and is showing signs of reversal at a long-term support point.
Dogecoin Price Analysis: Flag Pattern and Double Bottom Indicate Potential Surge
As an analyst, I’ve observed that Dogecoin’s price has undergone a significant correction since late March. This downward trend can be attributed to the formation of a flag pattern, which has influenced the asset’s value. The two converging trendlines, functioning as dynamic resistance and support, have caused Dogecoin’s value to plummet from $0.228 to its current price of $0.113. This represents a 50% decrease in value.
As an analyst, if the current trend continues, I believe that the DOGE price is experiencing a brief correction, providing an opportunity for it to regain its bullish energy and surge higher. With decreasing selling pressure in the cryptocurrency market, Dogecoin managed to maintain its position above the pattern’s lower support level at $0.113.
Examining the 4-hour chart reveals a double bottom formation around the mentioned support level. Should buyers manage to reverse the previous resistance of $0.129 into potential support, the Dogecoin price could surge by approximately 10% and approach the overhead trendline at $0.14.
To gain back effective management of this asset, it’s essential to have a lasting escape from the descending trendline. This action would mark the conclusion of the corrective phase and encourage buyers to pursue a prospective goal of $0.175, subsequently aiming for $0.228.
In contrast, the corrective trend is expected to continue until the two trendlines intersect and become aligned.
Technical Indicator
- RSI: The daily Relative Strength Index rebounded at the 30% neckline of the oversold region highlighting the increasing buying pressure for this asset after a notable correction.
- EMAs: The 50W Exponential Moving Average slope adds a layer of support at $0.113 to prevent further correction.
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2024-06-25 23:21