Dogecoin price to provide a potential buy opportunity amid market sell-off
- Dogecoin price is on track to a 15% correction to a stable support level at $0.196.
- The last two times DOGE retested $0.196, a 70% upswing followed.
- A breakdown of the $0.16 demand barrier will trigger a 48% correction.
Dogecoin price has not shown any strength as its peer meme coins rallied to new highs. The indecision in the market seems to be affecting DOGE as it has been freefalling for nearly three weeks. However, this bearish outlook could end if history repeats.
Dogecoin price descends with a bullish twist
Dogecoin price has dropped 32% over the past three weeks and shows that more is yet to come as the big crypto remains indecisive. DOGE is likely to correct another 15% and revisit the $0.196 support level.
While the short-term outlook is bearish, market participants can expect the Dogecoin price to show some sort of mild yet bullish reaction as it approaches the $0.196 foothold. The last two times (August 4, September 28), DOGE retested this barrier, a 70% upswing was observed over the course of two to four weeks.
Investors can expect the current pullback to stabilize around this support level, which would be a good buy opportunity. In an optimistic case, Dogecoin price is likely to bounce off the $0.196 foothold and trigger another quick run-up, which could propel DOGE to $0.311.
DOGE/USDT 12-hour chart
An increase in selling pressure around $0.196 could lead to a retest of the most significant support level at $0.16. If Dogecoin price produces a daily close below this barrier, it will invalidate the bullish thesis and potentially trigger a 50% correction to the $0.08 support floor.
Author
Akash Girimath
FXStreet
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.
