Will Dogecoin Plummet to $0.06?
The rising price of Dogecoin may face strong selling pressure at $0.083, potentially leading to a plunge. However, as long as the newly formed support trendline remains intact, the ongoing recovery could continue. The 24-hour trading volume for Dogecoin indicates a 25% gain, suggesting increased investor interest.
The meme cryptocurrency Dogecoin has gained attention due to its involvement in a space program. The upcoming launch of the Nova-C/IM-1 mission will carry the DOGE-1 Cubesat, which carries Dogecoin on its journey. This moon mission is set to launch in January next year.
Currently trading at $0.08, Dogecoin is gradually ascending under the influence of a new support trendline. This ascending trendline has provided strong support throughout November, helping to sustain a consistent rally.
However, there is a possibility of a reversal if Dogecoin fails to break through the upper trendline of a longstanding triangle pattern at around $0.084. Retesting this trendline often leads to increased bearish momentum and significant corrections.
If this scenario occurs, with a breakdown of the support trendline, Dogecoin could retreat to the lower trendline, resulting in a potential loss of 28% from the current price.
Is Dogecoin Ready for an Uptrend?
Dogecoin has been stuck in a sideways trend within a symmetrical triangle for nearly two years. If the price reverses from the upper trendline, the lateral movement may continue for the next month. To confirm a recovery, Dogecoin needs to break out of this triangle pattern.
- Relative Strength Index: A bearish divergence in the daily RSI slope indicates weakening bullish momentum and a higher potential for a reversal.
- Bollinger Bands: The relatively flat upper boundary of the Bollinger Bands indicator could act as a barrier against buyers at $0.084.
Hot Take: Dogecoin’s Future
Despite recent volatility, Dogecoin has shown resilience and adherence to key support levels. The upcoming launch of the DOGE-1 Cubesat adds to its appeal. However, the coin faces challenges in breaking through resistance and confirming an uptrend. Traders should closely monitor price movements and key technical indicators to make informed decisions about their Dogecoin investments.
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