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The Dogecoin(DOGE) price, currently trading at the $0.0625 mark, continues its consolidation in a narrow range. However, the lower time frame chart is shaping into a bullish reversal pattern which assists buyers in establishing a recovery rally; should you buy this breakout trade?
Key points from DOGE analysis:
- The DOGE/USDT pair forms a rounding bottom pattern in the four-hour time frame chart
- The coin price gained 4% in the last three days
- The 24-hour trading volume in the Dogecoin coin is $302.8 Million, indicating a 16.5% gain.
Source-Tradingview
The DOGE/USDT pair witnessed a 32.4% fall amid the August third-week sell-off. The memecoin plunged to $0.06 psychological support, nearing evaporating 75% of the June-August recovery.
This support level has stalled the correction phase for more that week, forming a narrow consolidation between $0.065 and $0.06. The short body candle with rejection candles on either side reflects uncertainty in market sentiment.
Lower Time Frame Chart Shows A Rounding Bottom Pattern
Source-tradingview
The four-hour time frame chart shapes the narrow consolidation into a rounding bottom pattern. As per the technical setup, this bullish reversal pattern would encourage buyers to bounce back from the $0.06 support.
Thus, a bullish breakout from the neckline resistance of $0.065 resistance would accelerate the bullish momentum and signal the resumption of the recovery rally. Thus, the post-breakout rally may push prices 15% higher to hit the $0.075 mark.
On a contrary note, if sellers continue to defend the $0.065 mark, the DOGE price would threaten to breach the bottom support of $0.06. Doing so will signal the extension of prevailing correction and revisit the $0.05 support.
Technical indicator
RSI indicator(4-hour): the daily-RSI slope shows an evident bullish divergence during the formation of a rounding bottom pattern, indicating growth in underlying bullishness. Moreover, the indicator value above the 50% mark bolsters the bullish movement.
EMAs: the 20-day EMA flipped resistance wavering at the $0.065 mark enhances the rejecting power of this barrier.
- Resistance levels- $0.065 and $0.075
- Support levels- $0.06 and $0.05
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