Published July 2, 2022
A recent pullback in Dogecoin(DOGE) price stalls at the shared support of $0.66 and Bollinger Band indicator’s midline. However, the price action hovering above this support for the past five days with the presence of long-tail rejection attached to the latest candle suggests a reversal possibility. is this a good buy?
Key points:
- The DOGE chart shows high demand pressure at $0.66 support
- DOGE chart hints at the possibility of forming a cup and handleÂ
- The 24-hour trading volume in the Dogecoin coin is $393.4 Billion, indicating a 26.% loss.
Source-Tradingview
The DOGE sellers rely on a descending trendline to maintain the ongoing downfall. Moreover, even last week’s 58% recovery rally rejected from the resistance trendline triggered a minor pullback.
On JUNE 28th, the DOGE price turned from the combined resistance of $0.075 and descended the trendline with an evening star candle. Thus, the bearish reversal plunged the altcoin by 16.14%, hitting the immediate support at $0.065.
However, over the past three days, the DOGE chart shows lower price rejection at the $0.065 support zone suggesting the buyers are defending this level. If the altcoin bounced back from this support, the buyers would drive the price back to the combined resistance and reveal a formation of a cup and handle pattern.
Furthermore, this bullish reversal pattern should encourage buyers to a bullish breakout from these overhead resistances, offering a better opportunity for recovery. Thus, the post-breakout rally should rise 28-32% to reach the target of $0.096-$0.1
On a contrary note, the $0.66 support fallout could dump the DOGE price to a $0.05 psychological level, threatening further downfall.
Technical indicator
ADX indicator: Despite a bearish pullback, the daily ADX showed a constant downfall in price action, indicating no improvement in selling momentum.
Bollinger band indicator: after long trading below the indicator’s midline, the coin price breached this dynamic resistance on June 24th. Now this neutral line acts as valid support and bolsters the cup and handle formation.
- Resistance levels- $0.075 and $0.088
- Support levels- $0.065 and $0.05
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
