Cryptocurrency

Dogecoin: Recovery may be on the cards for DOGE thanks to these factors

Bogged down from the broader sell-off, Dogecoin (DOGE) noticed renewed promoting strain round the $0.1456-mark. Thus, it continued to downswing beneath very important value factors whereas trying to discover its grounds.

An in depth towards the six-month trendline help might lay a basis for bulls to step in and thrust a short-term upswing. At press time, DOGE traded at $0.1375, up by 3.38% in the final 24 hours.

DOGE Daily Chart

Source: TradingView, DOGE/USD

After dropping beneath its $0.2-$0.3 vary, the meme-coin misplaced a bulk of its worth because it plunged in the direction of its multi-month low on 24 February. During this fall, DOGE witnessed a four-month-long descending channel (white).

Timely market intervention by the patrons at the $0.11-mark put DOGE ready to overturn its long-term down-channel. But the draw back was that the 200-EMA (inexperienced) and the 61.8% Fibonacci resistance would restrict DOGE’s resurgence. 

Soon after, the altcoin obliged the broader bearish tendencies by marking a falling wedge decline on its each day charts. Should the patrons pull off a Bullish Pin Bar on the present candlestick, DOGE might eye at a potential restoration towards the 38.2% earlier than coming into a decent section. As the higher and decrease band of the Bollinger Bands (BB) look to compress, DOGE might enter a squeeze section.

Rationale

Dogecoin Recovery may be on the cards for DOGE thanks

Source: TradingView, DOGE/USD

The altcoin’s RSI did bounce from the 44-mark and was but to discover a comfy place above the midline. An in depth above its instant trendline resistance was wanted to shun the near-term bearish speculations. 

Over the previous few weeks, the OBV has been constantly rising. Thus its troughs diverged with the value and uncovered bullish tendencies. 

Conclusion

Taking account of the bullish OBV divergence together with the potential of the bullish pin bar, DOGE might host a short-term rally in favor of patrons. However, with the BB compressing, the alt might see a squeeze close to the $0.14-zone. 

Moreover, the dog-themed coin shares a 49% 30-day correlation with the king coin. Thus, retaining an eye fixed on Bitcoin’s motion might complement these technical factors.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button