|

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

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

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

Bitcoin Weekly Forecast: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.
Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
Bitcoin, Ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets
Crypto traders betting on higher prices had about $1.29 billion in positions forcibly closed over the past 24 hours, as the selloff following Binance’s security breach pushed bitcoin, ether and smaller tokens lower. Total liquidations reached $1.53 billion by Friday morning in Asia, according to CoinGlass. Long positions, bets that prices would rise, accounted for 83.8% of the total.
Crypto Today: Bitcoin, Ethereum, XRP sell-off cools after Binance security breach
Cryptocurrency prices are on edge on Friday, with Bitcoin (BTC) delicately holding onto a short-term $78,000 support, Ethereum (ETH) edging lower near $2,200 and Ripple (XRP) attempting a recovery above support established at $1.20. The cooldown follows Binance, the largest crypto exchange, after it reported a hack that impacted about $6.3 billion.
Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.