Dogecoin price currently appears to have fallen into a deep bearish well as the past couple of hours has drained the price by nearly 9%. The descending trend is expected to continue as the bears may have extracted their profits after the bulls elevated the price in the past 24 hours. While the entire crypto markets currently seem to have inculcated a descending trend, fewer possibilities of a DOGE price rebound may be expected.
The long-term chart indicates the price swinging within a rising wedge and hence the current plunge is due to a rejection from the upper resistance. The pullback may drag the price towards the lower support at $0.07 levels by the end of the day’s trade. Further, a rebound may assist the price to maintain its trade within the wedge, until it reaches the apex.
However, reaching the apex, the DOGE price is expected to plunge hard to the lower support just below $0.07 at $0.0692. These levels may hold the price firmly and after a minor accumulation, the asset could continue with its ascending consolidation. If it fails to hold then, it may slice through these levels to hit the next support levels at $0.062.
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Is Dogecoin Dead? Will it Ever Regain $0.1 in 2022?
The Dogecoin price for the past week is pretty bullish as the asset has already registered a jump of more than 58%. Therefore, the current drop of 8% could be possibly due to the exhaustion of the bulls. Hence, the correction may drag the price lower by another 2% to 3%, further to which a significant upswing is imminent.
On the other hand, the technicals are pretty bullish as the RSI is maintaining a strong uptrend, nullifying the bearish impact. The buying volume has been largely accumulated and hence it could withstand selling pressure to some extent. However, the focus currently is on the Bitcoin price which is approaching the crucial support.
If the BTC price drops below $20,500 again, the markets are going to tumble down along with Dogecoin (DOGE) price to a large extent.
Also Read: Ethereum (ETH) Price to Lookout for a Corrective Move While Markets Turn Bullish!
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Source: https://coinpedia.org/price-analysis/dogecoindoge-price-sheds-the-days-gains-is-the-bearish-cartel-back-to-the-salt-mines/