Bearish pressure appears to be building around Dogecoin (DOGE) following a modest rise influenced by a renewed bullish sentiment in the overall cryptocurrency market. Despite the ongoing fluctuations and volatility affecting DOGE’s market performance, critical developments are emerging that may paint a positive outlook for this dog-themed meme coin.
After dropping below the $0.20 mark, Dogecoin has experienced substantial bearish movement, sustaining its price well beneath this threshold. However, analysts are now suggesting a potential floor price for DOGE. This comes after notable price corrections and fluctuations that can signal a turn.
According to noted technical analyst Trader Tardigrade, a crucial shift is occurring in Dogecoin’s daily chart, reflecting growing momentum. DOGE appears to have successfully bounced back from a previous breakdown, marking the first time it has regained strength after three attempts this year. Such a recovery hints at the resilience of the meme coin in the face of market challenges.
Trader Tardigrade believes that a bottom may have been reached for Dogecoin, suggesting that the ongoing correction could be coming to an end. If his analysis is accurate, this implies that the trajectory for DOGE is now primed for an upward trend. However, there is significant resistance around the $0.17 mark. A clear break above this resistance would signal the beginning of a renewed bullish phase for Dogecoin, potentially leading to even higher price levels.
In a recent post, Trader Tardigrade discussed the development of a Wyckoff Accumulation Pattern, which he previously predicted is evolving through successful tests in phase C. This pattern indicates that Dogecoin might reach its Last Point of Support (LPS) soon—an essential point that represents the deepest dip in a pullback before a price recovery.
Recent trends show that an upward trajectory for Dogecoin could be imminent. The cryptocurrency has displayed a notable bullish divergence, following a second signal in the Relative Strength Index (RSI). This divergence is marked by Dogecoin recently showing a lower low in price but a higher low in its RSI, signaling potential strength in the movement.
Market enthusiasts are keenly watching these developments, with many believing that the stage is set for DOGE to consolidate and gather momentum ahead of its next potential phase. By navigating through the existing resistance, Dogecoin may well recover and surpass previous highs, reinforcing its position in the crypto ecosystem.
