Analysis of DOGE Price Movement and Potential Reversal Amid Market Correction
DOGE, the largest meme cryptocurrency by market cap, has witnessed a notable downturn this week amid Bitcoin’s post-halving correction. The Dogecoin falling for five consecutive days tumbled, the price from $0.164 high to $0.146 registering an 11.17% loss. However, the asset price currently retesting crucial monthly support of the triangle pattern indicates a possibility of reversal.
Will Support at $0.145 Usher in a New Rally?
For nearly two months, the Dogecoin price has been trading sideways and can be traced through two converging trendlines of the daily chart. These trendlines acting as dynamic resistance and support indicate the formation of the symmetrical triangle pattern.
Currently, the DOGE price trades at $0.145 and witnessed demand pressure at the triangle’s lower trendline as displayed by a long-tail rejection. The asset has shown a history of bouncing back from the mentioned support, signaling a high area of interest for buyers.
According to a recent analysis by Santiment, a renowned crypto analytics firm, there is a notable divergence in the activity of cryptocurrency wallets. The data indicates that the total number of active non-empty Bitcoin wallets is on the rise, suggesting an increased interest in Bitcoin despite its price volatility.
In contrast, altcoin wallets for assets like Dogecoin have seen a plateau in activity, which follows significant increases earlier in the year. This trend could signal a shift in investor behavior, with traders potentially seeking stability in less volatile coins amid uncertain market conditions.
Thus, the DOGE price prolongs its consolidation for a few days or weeks which aligns with the development of a triangle pattern.
Anyhow, for this memecoin to enter a direction trend, the buyers must breach from either of the triangle’s trendlines. A potential breakout from the upper boundary will accelerate the buying momentum and bolster the asset to break $0.2.
Technical Indicator
BB Indicator: The downtick in the lower boundary of the Bollinger band indicator highlights the sellers are still aggressive towards this asset. Moving Average Convergence Divergence: A notable bearish reversal from MACD and signal line indicates no sign of reversal yet.
As Dogecoin faces a crucial juncture in its price movement, investors and traders will be closely monitoring the support level at $0.145 to see if it ushers in a new rally for the meme cryptocurrency. Stay tuned for more updates on this developing story.
