Sentiment or not, should you bet on Dogecoin rallying soon

Sentiment or not, should you bet on Dogecoin rallying soon

Since falling from its October highs, Dogecoin (DOGE) kept testing the $0.162-mark multiple times and flipped it to resistance. Since then, it has been marking lower lows until it gravitated towards the $0.11-floor.

From here on, a conclusive close above its trendline support (white, dashed) would position DOGE for a re-test near its EMA ribbons before a likely pullback from the $0.12-zone. At press time, DOGE was trading at $0.1165, down by 5.53% in the last 24 hours.

DOGE 4-hour chart

Source: TradingView, DOGE/USD

Since reversing from the $0.33-mark, the meme coin has declined by over 68% and plunged towards its ten-month low on 24 February. Except for a few times, the EMA ribbons refrained from undertaking a bullish flip over the last four months.

The downslide led the alt to lose the crucial $0.1360-mark, one that the bulls upheld for over ten months. The latest bearish engulfing candlesticks created a strong supply zone between the $0.123-$0.119 range. Furthermore, the Point of Control (red) and the 50 EMA would continue to pose a strong recovery barrier for bulls.

Going forward, the current trendline support is critical for the buyers to defend to prevent fallout. Keeping in mind the improving overall sentiment, a close above this support would lead to a POC retest before falling back into its long-term downtrend.


Source: TradingView, DOGE/USD

As the bearish RSI broke down from its midline support, it seemed to flatten at the 33-36 range support. Any recovery from this zone could open up chances for a test of its immediate resistance. 

Furthermore, CMF swayed above the midline and projected a bullish divergence with price. This reading entailed a bullish resurgence possibility. But with MACD lines undertaking a bearish crossover, the bulls will find it tough to defend the $0.115 support. In this case, a further fall towards the $0.111-mark before a reversal could be conceivable.  


With a bullish divergence on the CMF, a near-term comeback towards its 50 EMA would be probable. But for that, the bulls need to ensure the trendline support and propel a recovery on higher volumes. However, the meme coin shares a 77% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would be vital to complement these technical factors. 

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