Published 6 seconds ago
The Dogecoin(DOGE) price, currently trading at the $0.0625 mark, continues its consolidation in a narrow range. However, the lower time frame chart is shaping into a bullish reversal pattern which assists buyers in establishing a recovery rally; should you buy this breakout trade?
Key points from DOGE analysis:
- The DOGE/USDT pair forms a rounding bottom pattern in the four-hour time frame chart
- The coin price gained 4% in the last three days
- The 24-hour trading volume in the Dogecoin coin is $302.8 Million, indicating a 16.5% gain.
Source-Tradingview
The DOGE/USDT pair witnessed a 32.4% fall amid the August third-week sell-off. The memecoin plunged to $0.06 psychological support, nearing evaporating 75% of the June-August recovery.
This support level has stalled the correction phase for more that week, forming a narrow consolidation between $0.065 and $0.06. The short body candle with rejection candles on either side reflects uncertainty in market sentiment.
Lower Time Frame Chart Shows A Rounding Bottom Pattern
Source-tradingview
The four-hour time frame chart shapes the narrow consolidation into a rounding bottom pattern. As per the technical setup, this bullish reversal pattern would encourage buyers to bounce back from the $0.06 support.
Thus, a bullish breakout from the neckline resistance of $0.065 resistance would accelerate the bullish momentum and signal the resumption of the recovery rally. Thus, the post-breakout rally may push prices 15% higher to hit the $0.075 mark.
On a contrary note, if sellers continue to defend the $0.065 mark, the DOGE price would threaten to breach the bottom support of $0.06. Doing so will signal the extension of prevailing correction and revisit the $0.05 support.
RSI indicator(4-hour): the daily-RSI slope shows an evident bullish divergence during the formation of a rounding bottom pattern, indicating growth in underlying bullishness. Moreover, the indicator value above the 50% mark bolsters the bullish movement.
EMAs: the 20-day EMA flipped resistance wavering at the $0.065 mark enhances the rejecting power of this barrier.
- Resistance levels- $0.065 and $0.075
- Support levels- $0.06 and $0.05
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.
Source: https://coingape.com/markets/doge-price-could-sail-15-rally-with-this-emerging-pattern/