Dogecoin Price at a Crucial Reversal Spot
The price of Dogecoin is currently near the 50% Fibonacci level, indicating a potential double-bottom reversal. If the price falls below the 200-day EMA, it could lead to a death cross. The 24-hour trading volume for Dogecoin is $2.71 billion, representing a 16% loss.
The recent downturn in the Dogecoin price was influenced by the failure of the Bitcoin Spot ETF rally. This caused a significant decline in Doge’s value, dropping from its peak of $0.107 to find support at the crucial 200-day EMA level, resulting in a 25.5% decline.
Buyers are now working to stabilize the market, leading to sideways trading for Dogecoin. The coin’s price trajectory is hovering near the 61.8% Fibonacci retracement level, indicating a potential bullish resurgence and the formation of a double-bottom pattern.
However, the future of Dogecoin depends on broader market trends. If market sluggishness continues, there’s a risk of breaking below the crucial 200-day EMA support, which could lead to a further 17.5% decline in value.
This scenario could trigger an increased supply in the market and potentially lead to a further 17.5% decline in Dogecoin’s value to around $0.066.
On the other hand, positive sentiment towards Dogecoin, driven by strong community support, could result in a bullish reversal. If the coin price breaks above the $0.0877 neckline resistance of the double bottom, it could see a 22% surge to a potential target of $0.107.
Technical Indicators
- Exponential Moving Average: The bearish crossover of the 20-day and 50-day EMA indicates a short-term bear phase.
- Moving Average Convergence Divergence: The MACD and signal lines are preparing for a bullish crossover in the daily chart.
Related Articles:
- Where Dogecoin Price is Heading By January End, $0.1 or $0.06?
- Why Investors From Dogecoin (DOGE) and Shiba Inu (SHIB) Are Rushing To Buy Into The Pushd (PUSHD) Presale
- Dogecoin Whale Shifts 990 Mln DOGE, Price To Hit $1?
Hot Take: Should You Consider Buying Dogecoin Now?
The current consolidation and potential double-bottom pattern in Dogecoin suggest a possible reversal rally with a 30% upside potential. However, it’s important to consider the broader market trends and the risk of breaking below crucial support levels. If market sluggishness continues, there’s a possibility of further decline in Dogecoin’s value. On the other hand, if positive sentiment towards Dogecoin strengthens, driven by community support, there could be a bullish reversal with significant price gains. It’s essential to carefully analyze market conditions and make an informed decision when considering buying Dogecoin.
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