Back Under $0.07, Is it the Right Time to Buy $DOGE?

Dogecoin Price Analysis: over the last two months, the Dogecoin price witnessed dynamic resistance from a downsloping resistance trendline. The multiple reversals from this resistance indicate the aggressive nature of sellers and a strong hold over market trends. However, amid the recovery sentiment in the market, the DOGE price breaks the overhead trendline with an attempt for trend reversal. Can this breakout trigger a sustained rally, or is it a bull trap?

Also Read: Dogecoin, XRP Can Now be Used to Book 600 Airlines

Dogecoin Price Daily Chart

• A breakout above the overhead trendline sets the DOGE price for a 12.5% upswing
• The 20-day EMAs support trying to uplift buyers with dynamic support
• The 24-hour trading volume in the Dogecoin coin is $313.3 Million, indicating a 54% loss.

Source-Tradingview 

On July 1st, the Dogecoin price showed a bullish breakout from a long-coming resistance trendline of the daily chart. This breakout signals an early sign to trend change and a significant footing to enter long.

Furthermore, with an intraday loss of 2.22% the coin price retests the breached trendline to validate its sustainability for the bullish rally. This retest phase is crucial for potential buyers as long-wick rejection on breakout candle projects the overhead supply pressure is intact.

Currently, the DOGE price trades at $0.0669, and if the retest candle breaks below the downsloping trendline, the bullish thesis will invalidate. This bull trap could accelerate the selling pressure and plunge the prices back to $0.06 psychological support.

Will Dogecoin Price Retake $0.75 High?

If the retest candle witness demands pressure at the aforementioned trendline, it would indicate the buyers are defending their newly reclaimed support. The flipped trendline would stand as a strong launchpad using which the buyers could drive the 12.55% higher to hit $0.75, followed by $0.083.

• Exponential Moving Average: The 50-and-100-day EMAs dynamic resistance assists sellers with an additional barrier against rising prices.
• Average Directional Movement Index: The downsloping ADX slope reflects the prior bearish trend is weakening but still no clear indication of bullish momentum.