Dogecoin faces continued bearish momentum, with analyst Trader Tardigrade predicting a potential decline.
Dogecoin (DOGE) has faced some selling pressure recently, with the price fluctuating between $0.1303 and $0.1349 during the day. The largest memecoin by market cap is trading at $0.1304, with a 1.2% decrease in the last 24 hours.
Despite the short-term drop, Dogecoin has managed to hold above the $0.13 support level, which could be crucial in preventing further declines. However, the 24-hour decline follows a broader downward trend in the market.
Meanwhile, looking at a longer timeframe, Dogecoin has shown a 1.0% increase in the last 7 days, signaling some recovery in the short term, although it remains in negative territory on a 14-day basis with a 7.2% decline.
As the price hovers around the $0.13 support level, the next key move will depend on whether this level can hold, potentially determining if Dogecoin can begin a stronger recovery.
Can Dogecoin Pose a Recovery?
Dogecoin’s price action along with key indicators provides insights into potential support and resistance levels. The Accumulation/Distribution Oscillator (AO) shows red bars turned green, suggesting that buyers were trying to shift the momentum. However, if the oscillator does not shift to the positive side, sellers may attempt another push.
The Average True Range (ATR) is at 0.00791, indicating declining volatility in the market. Typically, a declining ATR suggests that price movements are becoming smaller and that market volatility is cooling off.
Looking at the support and resistance levels, the immediate support seems to be around the $0.120 level, where the price has recently tested and bounced back. If Dogecoin continues to struggle here, a deeper drop toward $0.10 could be possible.
On the other hand, immediate resistance is evident at $0.136, and breaking above this level could signal a short-term bullish reversal, potentially pushing the price toward the $0.153 region. Dogecoin would need a 17.3% surge from the current price of $0.1304 to reach $0.153.
Analyst: Can Dogecoin Revisit $0.12?
On the social media commentary end, Trader Tardigrade, an analyst on X, mentions that Dogecoin has formed a bearish Rising Wedge, accompanied by a breakdown on the 4-hour chart. He indicates that this pattern is likely to lead DOGE to revisit previous lows. Specifically, Tardigrade believes this could lead the price to revisit the $0.12 level.
Looking at Tardigrade’s chart, the price of DOGE appears to be capped within the Rising Wedge, with repeated attempts to break through the upper trendline being consistently rejected.
Several moves to the downside were also visible, although they were capped by the support trendline. However, he notes that this bearish scenario would be invalidated if DOGE stays above the $0.135 level.
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