Dogecoin Price Analysis Guide For The Coming Week

 

Amid the new year recovery in the crypto market, the Dogecoin price shows the formation of a rising channel pattern. This pattern consists of two ascending trendlines directing which is sustained currently in an asset. However, with the recent sell-off in the market, the DOGE price lost the pattern’s support indicating a significant downfall in the coming days.

Key Points:

• A bearish breakdown from the channel pattern’s support trendline set Dogecoin price for a 15.55% drop
• An upside breakout from $0.88 resistance will weaken the bearish thesis.
• The 24-hour trading volume in the Dogecoin coin is $383.2 Billion, indicating a 3.5% gain.

Source-Tradingview

On February 9th, the Dogecoin price gave a massive breakdown from the channel pattern’s support trendline. This breakdown is a sign of trend reversal as the market sentiment must be flipping from buying on the dips to selling on rallies.

However, the coin price recently rebounded from the $0.079 support and initiated a minor retest phase before the potential downfall began. In the last three days, the coin price gained 6.4% from the $0.079 support, which pushed the price to the current price of $0.084.

Also Read: Explained: What is Physical NFT? and How to Sell Physical Items as NFT

This retest phase will validate whether the price can sustain the ongoing correction or not. With sustained buying, the Doge price will revisit the $0.88 mark as potential resistance. If the price shows sustainability below this resistance, the price is likely to witness further downfall.

The prolonged correction may tumble the Dogecoin price 15.5% down to $0.071. 

Technical indicator

RSI: The Relative Strength Index is a momentum oscillator that measures the strength of an asset’s price action. Thus, the daily RSI slope nosedived below the midline indicates growth in the underlying bearishness of the coin.

EMAs: the crucial daily EMAs(20, 50, 100, 200) accumulation between Dogecoin’s current price and $0.088 indicates a price with the least resistance or an easy path going downward.

Dogecoin Price Intraday Levels

• Spot rate: $0.083
• Trend: Bullish
• Volatility: Medium 
• Resistance levels- $0.0887 and $0.1
• Support levels- $0.079 and $0.071