Dogecoin Price Analysis: The ongoing correction trend in the crypto market took a halt on Tuesday as the Bitcoin price rebounded from the $60000 support. The 2.3% jump in BTC price sparked a fresh relief rally in the altcoin market especially in volatile assets like Meme coin. The Dog-themed memecoin DOGE is up 7.3% today developing a reversal pattern at a multi-month support.
Also Read: Bitcoin Price: Flag Pattern And On-Chain Data Signal Reversal To $88K Soon
Dogecoin Price Analysis: Flag Pattern and Double Bottom Indicate Potential Surge
Dogecoin Price Analysis| Tradingview
Since late March, the Dogecoin price has witnessed a steady correction under the influence of flag pattern formation. The two converging trendlines acting as dynamic resistance and support have tumbled the asset value from $0.228 to $0.113 registering a 50%.
If the pattern holds true, the DOGE price is under a temporary pullback which allows it to replenish exhausted bullish momentum for a higher rally. As the selling pressure in the crypto market eased, this Dog-themed memecoin stabilized above the pattern’s lower trendline at $0.113.
An analysis of the 4-hour chart shows a double bottom pattern, at the aforementioned support. If the buyers flip the $0.129 resistance into potential support, the DOGE price could rise another 10% to target the overhead trendline at $0.14.
For buyers to regain better control over this asset, a sustainable breakout from the downsloping is needed. Doing so will signal the end of the correction pattern and bolster buyers to chase a potential target of $0.175, followed by $0.228.
On a contrary note, the correction trend will prolong until the two converging trendlines are intact.
Technical Indicator
RSI: The daily Relative Strength Index rebounded at the 30% neckline of the oversold region highlighting the increasing buying pressure for this asset after a notable correction.
EMAs: The 50W Exponential Moving Average slope adds a layer of support at $0.113 to prevent further correction.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
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.
