Supply Pressure Threatens for 18% Drop

As Bitcoin price rebounds from its $26,500 level, a ripple effect has been observed across the broader cryptocurrency market. As a result, the DOGE Price experienced a 5% uptick over the past five days, escalating from a low of $0.057 to its current trading price of $0.06. This uptrend attempts to challenge a stubborn resistance line that has led to the ongoing correction trend price action for nearly a year.

Also Read: Shiba Inu And Dogecoin Get Listed On BitTrade, Price To Rally?

Should You Buy at $0.055 Support?

• The Dogecoin price may prolong a sideways trend before giving a decisive breakout.
• A long-coming support trendline prevents the investors from major correction.
• The 24-hour trading volume in Dogecoin is $165 Million, indicating an 87% gain.

Source-Tradingview 

In the short term, the Dogecoin price movement is primarily lateral, oscillating between two converging trendlines that serve as dynamic resistance and support levels. This formation is compressing the trading range, effectively creating a “no-trade zone.” 

Earlier today, this memecoin rose by 2.7% intraday, teasing a breakout above the overhead resistance. However, sellers have maintained their stronghold, pushing the DOGE price back down and forming a long-tail rejection candle. 

This could signify a retreat back to the lower trendline, perpetuating the sideways action. Nonetheless, as the trading range narrows, a decisive breakout—or breakdown—is becoming increasingly imminent. 

Should the asset manage to close above the upper trendline on the daily chart, a swift 14% rally to $0.0685 could be on the horizon.

Is DOGE Price Threatened for Major Correction?

The DOGE price chart reveals a persistent ascending support trendline that has been in play for over two and a half years. This trendline has acted as a safety net during major market downturns, making it a focal point for investor accumulation. A breach below this line could therefore spell a significant downtrend for Dogecoin, marking a crucial juncture for both short-term traders and long-term investors alike. The post-breakdown fall would first hit the $0.05 support registering a potential loss of 18%.

• Moving Average Convergence Divergence: The MACD(blue) and (signal)orange slope moving sideways near the midline reflect a neutral sentiment among neutral, accentuating a sideways trend in this asset.
• Exponential Moving Average: The coin price trading below the daily EMAs(20, 50, 100, and 200) indicates the bear trend sentiment in the market.