DOGE has spent nearly two months engaged in a sideways trend, primarily confined within the price range defined by the candlestick on August 17th, oscillating between $0.068 and $0.053. During this period of consolidation, the daily charts consistently illustrate short-bodied candlesticks, indicating a lack of solid momentum from buyers and sellers.
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Nevertheless, in light of the recent dip in the market, the DOGE price is gradually approaching its fundamental Support level, raising the possibility of an upcoming bullish resurgence. The question now is whether this crucial support will trigger a substantial rebound.
Is the Memecoin on the Path to $0.055?
The DOGE price appears poised to extend its sideways movement, remaining within a descending trendline and the $0.55 support level. The $0.055 threshold, aligned with the long-standing support trendline, establishes a significant accumulation zone.
Furthermore, the 24-hour trading volume for Dogecoin stands at $198 million, reflecting an impressive 109% increase.
In the short-term outlook, Dogecoin’s price movement has been predominantly lateral, fluctuating between the horizontal levels of $0.068 and $0.0575. However, a more detailed analysis of the daily charts reveals the presence of a long-established resistance trendline that consistently exerts downward pressure on this cryptocurrency inspired by memes.
The underlying support at play here has the potential to revitalize waning bullish sentiment, paving the way for a robust resurgence led by buyers. Should this potential rebound successfully breach the resistance trendline, it would be an early sign of a bullish reversal, propelling the coin by approximately 14% as it takes on the challenge of reaching the $0.068 threshold.
DOGE vs. BTC Performance
A comparative analysis shows that Bitcoin’s price has embarked on a fresh relief rally in mid-September. Despite the boost from the leading cryptocurrency, Dogecoin’s price continues to set new lower highs, indicating weaknesses in its bullish momentum. Consequently, this meme-inspired coin faces the looming threat of a more significant decline should the Broader Market Sentiment turn bearish.
The daily RSI, dropping below the 40% level, underscores aggressive bearish momentum in the market. On the daily chart, a red overlay signifies that sellers currently maintain the upper hand.
These combined factors paint a challenging picture for Dogecoin, with its performance closely linked to broader market sentiment. In the event of a bearish turn in the broader cryptocurrency market, Dogecoin could experience a more substantial decline.
Read Also: Dogecoin (DOGE) Faces Bearish Pressure: Will it Dip Below $0.06?
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