Amid the recent recovery rally, the billionaire Elon Musk provided a slight boost to DOGE price, reaching the $0.17 mark. However, last week’s sell-off in the crypto market sank the altcoin to the immediate support of $0.133. The buyers attempt to push the price higher, but sellers undermine them by forming evening star candle
Key points:
- The DOGE price forms an evening star candle in the daily chart
- The 24-hour trading volume in the Dogecoin coin is $661.2 million, indicating a 54.8% loss.
Source-Tradingview
The V-shaped recovery initiated from the $0.11 support pumped the Dogecoin(DOGE) price by 54% up to $1.7. However, the sellers retaliated with a higher force and turned the price down with a bearish engulfing candle.
This sudden drop in DOGE price was triggered by a flash crash in Bitcoin price by April’s first week. As a result, the memecoin slumped to the local support of $0.133, registering a 21% fall.
Furthermore, the altcoin rebounded from support with four consecutive green candles, displaying an 8.88% gain. However, these green candles reflected small bodies and higher price rejection, indicating weakness in the buying pressure.
Today, the DOGE price is down by 2.2% and teases a revisit to $0.133 support.
For coin holders: The DOGE traders should closely watch the $0.133 support as a bullish reversal from this level would form an inverted head and shoulder pattern. This price pattern with a neckline at the $0.17 mark could ascend the coin price above the $.02 mark.
However, the bullish thesis will be invalid if sellers dump the DOGE price below $0.133 support, threatening a freefall to march bottom support of $0.11.
Technical indicator
Despite a significant correction in price action, the ADX slope barely dropped to any extent, accentuating a sustained bullish momentum.
The 50 DMA slope aligned with the bottom support of $0.134 provides solid support for buyers. However, the coin price trading below the 200 DMA indicates an overall bear trend.
- Resistance levels- $0.17 and $0.2
- Support levels- $0.13 and $0.11
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/dogecoin-price-analysis-doge-price-teases-a-revisit-to-0-133-support/