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Dogecoin: A good entry trigger for DOGE bulls can be found at…

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Source: Canva

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.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.