Analyst Anticipates Dogecoin Retest Reversal to $0.16, But $0.10 Support Remains at Risk

Will a post-retest reversal in Dogecoin (DOGE) result in a bounce back from the $0.10 psychological mark?

With the crypto market witnessing waves of supply incoming amid global tensions, meme coins are at crucial support. Dogecoin, the leading meme coin per market cap, rests at a critical level of $0.10. 

With the rising FUD warning of a potential crypto bear market, Dogecoin is facing a crossroads. Can It sustain its position above $0.10?

Dogecoin’s Retest At $0.10

According to Ali Martinez’s analysis, Dogecoin is retesting a falling wedge breakout. It is currently sitting at the broken resistance trendline following a four-day downturn, during which it lost 20% of its market cap.

At the moment, Dogecoin is holding near the psychological level of $0.10, showing an intraday gain of 1.07% from its opening price of $0.10457. A post-retest reversal with a morning star pattern is possible based on intraday price action.

However, broader market selling pressure and increased supply could lead to a bearish continuation. A fall below the resistance trendline would signal a failed bullish breakout and heighten the chances of a continued downtrend.

Bearish Pennant Increases Risk

In the 4-hour chart, a sudden surge in selling pressure has formed a bearish pennant pattern. The downtrend aligns with the Elliott five-wave correction. Dogecoin is now caught within the bearish pennant, with Elliott’s ABC correction at play.

A bullish breakout from this bearish pennant would improve the likelihood of a post-retest reversal of the daily chart’s wedge breakout. Conversely, a bearish pullback below the $0.10 psychological level would diminish the chances of a bullish recovery.

Additionally, the 4-hour chart shows the MACD indicator signaling a potential bullish crossover after a bearish cycle. However, the declining trend in the 50-100-200 EMA could act as dynamic resistance, limiting any potential bullish growth.

Dogecoin Price Targets

Ultimately, uncertainty remains high as Dogecoin hovers on fragile ground. Based on the price action in the daily chart, Dogecoin could face resistance at $0.1130 and $0.14026 if bullish momentum returns following a post-retest reversal.

Meanwhile, Martinez suggested if the $0.10 support level holds, Dogecoin could rebound to $0.16. On the downside, a drop below $0.10 would put the $0.097 and $0.092 support levels at risk.