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Why the Dogecoin price could finally recover some of summer’s losses

  • Dogecoin price is currently testing a a colliding 8-day exponential and 21-day simple moving average.
  • The volume profile indicator has been relatively sparse throughout the recent decline.
  • A 20% rally could occur in the short term towards the mid $0.07 zone if market conditions persist. 

Dogecoin price has been suppressed since August, the downtrend is still intact though the bears may let up pressure in the coming days. 

Dogecoin price could rise 

Dogecoin price is displaying the first signs of retaliation amidst the severe downtrend established during September. The bulls are currently test both the colliding 8-day exponential and 21-day simple moving averages as they collide near the $0.06 barrier on the 12-hour chart. 

Dogecoin price currently suctions at $0.062 If the bulls can produce a sustained close above colliding moving averages a buyers’ frenzy towards the mid way of the declining rally could ensue. Such a move would result 20% increase in profit towards the mid $0.07 levels.

tm/doge/917/22

DOGE USDT 12-Hour Chart

The Volume Profile Indicator confounds the idea that a pullback is due as the transactions have persistently tapered throughout the decline since August, If the bulls produce the bullish hurdles mentioned above, Invalidation of the uptrend would be the September 7th swing low at 0.057. 

 In the following video, our analysts deep dive into Dogecoin's price action, analysing key market interest levels. - FXStreet Team

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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