Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
As anticipated by a previous article, DOGE saw recovery from its long-term support and recovered towards the $0.12-mark after testing its Point of Control (POC, red).
Now, a close below its immediate trendline support has positioned DOGE for a near-term pullback towards the $0.11-zone. With the $0.12-mark posing as a strong barrier, the bulls still need to ramp up volumes to find an unrestrained rally above its 20 EMA (red).
At press time, DOGE was trading at $0.1198, down by 2.25% in the last 24 hours.
DOGE Daily Chart
Source: TradingView, DOGE/USD
Since its October highs, the alt has declined by over 70% as it gravitated to its ten-month low on 24 February. During this downslide, the 50-EMA (cyan) was a strong selling point that reversed most bullish recovery attempts.
The downfall led the meme coin to lose the crucial $0.1213-mark, one that the bulls defended for over ten months. The latest recovery saw a falling wedge breakout after the alt reversed from its long-term support. As a result, the price jumped above the seven-week POC.
Going forward, any close below its immediate trendline support could lead to a test of the $0.11-mark before the alt picks itself up from its long-term support. Also, the 20 EMA and 50 EMA were still slightly overstretched. Thus, keeping up the bullish resurgence hopes alive in the days to come.
Rationale
Source: TradingView, DOGE/USD
The RSI struggled to cross the midline and continued to display an edge for the bears. Any further retracements would find a base at the 40-mark. Further, the CMF marked lower peaks over the last week while the price action broke out of its reversal pattern.
This trajectory revealed the underlying intentions of the sellers and affirmed a bearish divergence. Thus, a further fall towards the $0.11-zone is conceivable before a possible lift-off.
Conclusion
Keeping in mind the bearish divergence of price with the CMF, a retracement towards the $11-zone seems likely before the alt picks itself up to topple the 20 EMA. Also, the dog-themed coin shares a 26% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement could complement these technical factors.
