|

Dogecoin price reaches key support, suggesting a 40% rebound for DOGE

  • Dogecoin price is currently hovering above the $0.213 support barrier.
  • A retest of $0.193 is plausible before DOGE sparks an ascent to $0.268.
  • A decisive close below $0.179 will invalidate the bullish thesis.

Dogecoin price has been lacking volatility for the past 11 days, but the recent sell-off seems to have reintroduced it, leading to a breakdown of the immediate support floor. While a bounce from the current position is likely, investors should be wary of another downswing.

Dogecoin price waits for buyers’ comeback

Dogecoin price has been on a downward sloping consolidation since September 8 but broke out to the downside as of September 20, slicing through the $0.230 support floor. Currently, DOGE is hovering above the $0.213 demand barrier and shows signs of recovery.

If BTC shows strength, DOGE may kick-start a new uptrend from this platform. In case of a no-go, market participants can expect the meme-themed cryptocurrency to slice through $0.213 and make its way toward $0.193. In some cases, the market makers might briefly dip below this floor to collect liquidity, signaling the possible start of a new uptrend.

The resulting uptrend is likely to smash through the incoming resistance barriers and make a run at the $0.268 ceiling. This climb would represent a 40% ascent.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

Regardless of the support floors, if Bitcoin price fails to muster the strength and face the bulls, Dogecoin price will continue to remain weak, especially if DOGE breaks below the $0.193 support platform. This move will indicate an increased selling activity among holders and panic.

Such a move might push Dogecoin price to retest the $0.179 barrier, a breakdown of which will invalidate the bullish thesis and potentially trigger further descent to $0.158.


Like this article? Help us with some feedback by answering this survey:

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Editor's Picks

XRP recovery faces resistance as derivatives demand cools

XRP holds support at the 50-day EMA, but the 200-day EMA may limit recovery. XRP bulls battle to regain control, while momentum indicators remain downward, weighing on price action.

Crypto Today: Bitcoin, Ethereum, XRP stabilize defying macro headwinds and ETF outflows

Bitcoin is showing resilience, trading up above $76,000 on Thursday. The uptick follows the US Fed decision that hiked interest rates the day before. Meanwhile, ETH gains momentum toward $2,500, suggesting the return of bulls as macro headwinds settle.

Bitcoin extends cautious rebound as ETF outflows, hawkish Fed risks cap upside potential

Bitcoin extends rebound trading above $76,500 on Thursday after a mild recovery the previous day. The Fed’s hawkish outlook, alongside escalating Middle East tensions, could limit BTC upside potential.

Top Altcoins Price Forecast: Ripple, Cardano, Dogecoin – Downside risk looms amid market uncertainties

Ripple edges higher to $1.30 on Thursday, supported by its 50-day EMA at $1.28. Cardano holds near the short-term support trendline, with bulls attempting to reclaim the 50-day EMA at $0.1994.

Bitcoin: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.