Connect with us

Analysis

Dogecoin traders can leverage this support level to remain profitable

Published

on

Source: Canva

In its previous bull run, Dogecoin’s [DOGE] breakout paved a path above its nine-month trendline support (white, dashed). This revival aided the meme-coin in accelerating growth above its 20/50/200 EMA on the daily chart.

The volatile break from the ascending triangle structure saw a stiff hurdle in the $0.087 region. This reversal can now find rebounding grounds near the $0.066-$0.065 range.

At press time, DOGE was trading at $0.069, down by 14.96% in the last 24 hours.

DOGE Daily Chart

Source: TradingView, DOGE/USD

The buying comeback from the 15-month support in the $0.049-$0.052 range helped the coin to maintain a sideways track in this timeframe. Meanwhile, the buyers struggled to break above the shackles of the $0.071 level.

While the buying pressure seemingly built up around this level, the recent growth confirmed the ascending triangle on the chart.

Given the bullish revival tendencies over the past month, the coin could find reliable grounds in the $0.065-$0.066 range. Any break below this range could put the altcoin in a price discovery phase to reiterate the bearish edge.

However, a buying intervention at this range can help the bulls prevent further losses. The buyers would aim to provoke a recovery toward the near-term EMAs in the $0.73 zone.

Rationale

Source: TradingView, DOGE/USD

The RSI finally plunged below the equilibrium to reveal a bearish edge. The bulls must maintain the 43-level support to keep up the revival possibility alive.

Interestingly, the CMF and the OBV lines marked higher troughs over the last week. This trajectory affirmed the plausibility of a bullish divergence with the price action. But the alt was yet to display a strong directional trend, as evidenced by the ADX.

Conclusion

DOGE’s fall below the near-term EMAs and the $0.07-mark has positioned the altcoin for a near-term sluggish phase. A potential rebound above this mark could hint at a possible revival. The targets would remain the same as discussed.

Finally, the dog-themed coin shares a 70% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

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.

Click to comment

Leave a Reply

Your email address will not be published.

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.