The Dogecoin (DOGE) Price Breakdown and Reversal
The price of Dogecoin (DOGE) has experienced a decrease since July 25, with a significant breakdown occurring on October 9. However, despite the breakdown, the price did not decrease significantly and instead began an upward movement shortly afterward.
Technical Analysis: Will Dogecoin Reclaim Critical Level?
An analysis of the daily timeframe for DOGE reveals that the price has been trading above the $0.060 horizontal support area since June. Additionally, it has been following a descending resistance trendline, creating a bearish descending triangle pattern.
On October 9, the price broke down below the support level but quickly reversed the trend. Currently, DOGE is trading within the $0.060 horizontal area and the descending resistance trendline, which has been in place for 85 days.
The Bullish RSI and Price Prediction
The daily Relative Strength Index (RSI), which indicates market momentum, is currently bullish. Although it is still below 50, it is increasing and has generated a bullish divergence since August.
To confirm the trend, two things must occur: DOGE needs to close above the descending resistance trendline on a daily basis, and the $0.060 area and daily RSI must move above 50. If these conditions are met, the DOGE price could increase by 20% and reach the $0.070 resistance level.
Expert Opinion and Fibonacci Retracement Theory
EfloudTheSurfer, a well-known cryptocurrency trader, shares a similar outlook. According to the Fibonacci retracement theory, after a significant price move in one direction, there is usually a partial retracement before continuing in the same direction. The theory also helps identify potential support levels during downturns, with the 1.61 external Fib level at $0.048 serving as a potential bottom.
Hot Take: The Future of DOGE
The future price prediction for DOGE depends on whether the price breaks out above $0.060 or gets rejected. In the case of rejection, the altcoin could drop by 18% to the next support level at $0.048.
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