DOGE Price at Critical Juncture– Will $0.055 Hold or Fold?

For nearly two months, the DOGE price has maintained a horizontal movement, essentially moving within the boundaries set by the August 17th candlestick, with limits between $0.068 and $0.053. Throughout this consolidation phase, the daily charts consistently depict short-bodied candlesticks, signifying a lack of aggressive action from both buyers and sellers. However, with the recent market dip, the coin price is inching closer to the foundational support, possibly hinting at an impending bullish resurgence. But will this vital support catalyze a significant rebound?

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Is Dogecoin Heading to $0.055?

• The DOGE price may prolong the  sideways trendline within a downsloping trendline and $.55 support
• The $0.055 level aligned with the  long-coming support trendline creates a high accumulation zone
• The 24-hour trading volume in Dogecoin is $198 Million, indicating a 109% gain

Source-Tradingview 

In the near-term perspective, the Dogecoin price trajectory has been predominantly lateral, oscillating between $0.068 and $0.0575 horizontal levels. However, a closer look at the daily charts reveals a long-coming resistance trendline that’s applying consistent selling pressure on this meme-inspired crypto. 

On October 2nd, Dogecoin faced its fourth retreat from this resistance, translating to a 7.5% drop over the subsequent fortnight. As of now, this Dog-themed memecoin is pegged at $0.0598, down by 3% today. Should the resistance trendline maintain its selling grip, the coin holders could anticipate another 7% drop, potentially retesting the year-long support trendline nestled around the $0.055 region. 

This foundational support could recuperate the dwindling bullish sentiment, setting the stage for a robust buyer-led rebound. If this potential resurgence successfully pierces the resistance trendline, it would be an early indication of a bullish reversal, potentially elevating the coin by approximately 14% to challenge the ceiling at $0.068.

DOGE vs BTC Performance

Source: Coingape| Dogecoin Vs Bitcoin Price

In a comparison analysis, it seems the Bitcoin price has started a new relief rally since mid-September. Despite the boost from the leading cryptocurrency, the Dogecoin price continues to mark new lower highs indicating weaknesses in the bullish momentum. Therefore, this memecoin is threatened with a more prominent downfall if the broader market sentiment turns bearish.

• Relative Strength Index: The daily RSI drop below 40% reflects the aggressive bearish momentum in the market.
• Supertrend: The daily chart projecting a red film indicates the sellers hold the upper hand.