- Dogecoin price is down 37% since August.
- DOGE price has fallen under low volume.
- Invalidation of the countertrend idea is a breach below $0.049.
Dogecoin price could witness a profitable rebound in the coming days.
Dogecoin price recovery rally
Dogecoin price is worth keeping on your watchlist if you are an active day trader. On September 19, the notorious meme coin showed signals that could prompt a 30% rally in the short term.
Dogecoin price currently auctions at around $0.058, following a 37% downtrend since the August 16 failed breakout. The penny-from-Eiffel style decline has provoked day traders to persistently take a jab at trying to buy the falling DOGE price. A change in market behavior can be noted as Dogecoin's recent stair-step decline in the last week comes under low volume.
DOGE USDT 8-Hour Chart
A Fibonacci Retracement tool surrounding the August high at $0.089 and the most recent swing low at $0.056 shows a 61.8% retracement level in the mid $0.07 zone. If the technicals are correct, retail bears may be in for a rude awakening as a 30%rally could ensue to tag the magnet-like price levels. Additionally, there are subtle bullish divergences on the 4-hour chart, which could be Smart Money sneakily entering the market.
Invalidation of the bullish countertrend thesis should not be the recent swing low. A safer invalidation at the current time is the June 18 swing low at $0.049. This creates enough wiggle room for traders to avoid any last-minute liquidity hunts before the anticipated countertrend rally occurs.
In the following video, our analysts deep dive into Dogecoin's price action, analysing key market interest levels. - FXStreet Team
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