Dogecoin Price Analysis: Will DOGE Reclaim $0.15 Before June End?
The Dog-themed memecoin DOGE is up 7.3% today, showing signs of a reversal pattern at a significant support level.
Dogecoin Price Analysis: Crypto Market Halt and Recovery
The ongoing correction trend in the crypto market paused on Tuesday when Bitcoin rebounded from the $60,000 support level. This 2.3% jump in BTC's price caused a fresh relief rally, particularly in volatile assets like meme coins. Subsequently, Dogecoin (DOGE) surged by 7.3%, developing a reversal pattern at a multi-month support level.
Flag Pattern and Double Bottom Indicate Potential Surge
Since late March, Dogecoin has been on a steady correction influenced by a flag pattern formation. This pattern's trendlines acted as dynamic resistance and support, dropping the asset's value from $0.228 to $0.113, a significant 50% decrease.
If this pattern holds, the DOGE price is experiencing a temporary pullback to replenish bullish momentum. As the selling pressure in the crypto market eased, DOGE stabilized above the pattern's lower trendline at $0.113. The analysis of the 4-hour chart reveals a double bottom pattern at this support level. If buyers can flip the $0.129 resistance into potential support, DOGE could rise another 10%, targeting the overhead trendline at $0.14.
For buyers to regain better control, a sustainable breakout from the downsloping trendline is needed. This breakout would signal the end of the correction pattern and provide buyers with a potential target of $0.175, followed by $0.228. Conversely, the correction trend will continue as long as the two converging trendlines hold.
Technical Indicators
RSI: The daily Relative Strength Index rebounded at 30% from the oversold region, highlighting increased buying pressure after a notable correction.
EMAs: The 50W Exponential Moving Average adds support at $0.113 to prevent further correction.
Expert Insight
Sahil, a dedicated full-time trader with over three years of experience in the financial markets, underscores the importance of technical analysis. He monitors daily price movements of top assets and has a keen interest in the emerging realm of cryptocurrency.
The content presented may reflect the author's personal opinion and is influenced by market conditions. It's crucial to conduct your own market research before investing in cryptocurrencies. Neither the author nor the publication holds responsibility for any personal financial loss.
