Dogecoin has seen a downturn following its recent peak, coinciding with Bitcoin’s inability to maintain its position and undergoing a significant drop in value, resulting in market uncertainty. DOGE, closely mirroring BTC’s trajectory, retraced and fell from pivotal levels, yet it remains on a positive trajectory and appears primed for a potential uptick.
Crypto analyst Rekt Capital points out that Dogecoin is currently undergoing a reevaluation phase where it is returning to the crucial support area around $0.20. This stage indicates testing this level as foundational support by the market, which could lead to higher short-term volatility.
Nevertheless, neglecting this technical milestone would be myopic. Instead it should be noted that Dogecoin’s retest of this region serves as a tactical move towards establishing a solid base for future possible gains. Though there have been attempts at propping up the coin around the $0.20 mark, they have failed, as evidenced by its fall beneath this barrier.
At the time of writing, the price of Dogecoin stands at $0.185585, accompanied by a significant 24-hour trading volume of $5.17 billion and a market capitalization of $26.67 billion. This recent movement reflects a notable decrease of 9.11% within the last 24 hours.
Dogecoin Breaks Trend, Shows Growth Potential
From a technical viewpoint, Dogecoin has recently surged beyond its previous horizontal trend channel, suggesting a sustained positive trajectory in the medium to long term. This breakout indicates strong growth, with the cryptocurrency expected to attract bids at these levels when retracing back toward the upper boundary of the trend channel.
Notably, there are no significant resistance levels visible in the price chart, suggesting further upward movement. However, if a downward correction happens, Dogecoin is likely to find support around the 0.10 mark.
Analysis of volume patterns reveals a clear relationship between volume peaks & troughs and corresponding highs and lows in price, thus validating the breakout of this trend line. Moreover, RSI has shown a negative divergence against price, implying that there could be some downside correction.
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