Dogecoin Price Revisits $0.074 Monthly Support; Will It Rise Again?

19.12.2022

0 27

Amid the recent sell-off in the crypto market, the Dogecoin price witnessed a directional downfall which plunged its price to monthly support of $0.074. However, the weak bullish reversal from this mentioned support indicates the prices will eventually resume the prior downtrend. But how far may this potential rally go?

Key points:

The Dogecoin price hints at a temporary pullback of 7-16% before triggering the next bear cycle
A daily candle closing below $0.0074 will signal prolonged correction in this memecoin.
The 24-hour trading volume in the Dogecoin coin is $295.5 Billion, indicating a 25% loss.

Source-Tradingview

In the last three weeks, the Dogecoin price has witnessed significant outflow in response to the recent sell-off in the crypto market. This downfall triggered a V-top reversal from the $0.11 resistance and tumbled 32.6% down to reach the monthly support of $0.074,

This V-top reversal reflects a mountain-type structure and indicates aggressive selling in the market. This downfall entirely offsets the last recovery cycle whiteness during late November. However, On December 17th, this memcoin’s price jumped 5% in an attempt to bounce back from this $0.074 floor.

Furthermore, no significant signs of intense buying pressure during the rebound question the possibility of sustainable recovery. The Dogecoin price currently trades at $0.077, within an intraday loss of 0.88%

Considering if the buying pressure persists, the prices may ride a temporary rally which could retest the $0.0827 or $0.090 flipped resistance.

However, with the higher possibility of a $0.074 support breakdown, the Dogecoin price will resume its ongoing downfall and tumble 15.5% down to reach the $0.065 mark.

Technical indicator

RSI indicator: The RSI indicator project the strength of the coin’s recent price action; the indicator’s slope diving lower in the bearish territory indicates the increasing bearish momentum.

EMAs: the crucial EMAs(20, 50, 100, and 200) accumulated between $0.09 and $0.0827 levels, creating multiple hurdles for a potential rally to overcome.