Dogecoin Price Analysis: Can $DOGE Bulls Defend $0.55 Support?

Dogecoin Price Analysis: Amidst the harsh conditions provoked by the legal battle between US SEC and Big crypto exchange Binance(BNB) and Coinbase(Coin), the Dogecoin price has displayed a drastic fall from the $0.069 mark. However, the downtrend asset found support at the base of the bearish channel, the buyers are absorbing the sell-off neatly. Will Dogecoin reverse from the baseline or is the memecoin set to fall below $0.050?

Also Read: Elon Musk Mentions DOGE in a Tweet, Impact is Yet to be Seen

Dogecoin Price Daily Chart

• Dogecoin price retests the $0.065 breakdown to test the $0.056 level.
• Buying at lower levels leads to tail formation projecting a potential reversal, as buyers absorb the sell-off.
• The 24-hour trading volume in the Dogecoin coin is $911.5 Million, indicating a 271% gain.

Source-Tradingview 

Moving in a negatively inclined bearish channel, today the dogecoin price approaches the support trend line with an intraday fall of 13.85%. Responding to a recent market sell-off, the meme coin gives a follow-through of a consolidation range fallout between $0.069 and $0.075.

The sell-off forms a bearish engulfing candlestick reflecting the high momentum trapped within the range. However, the Dogecoin investors are readily accumulating the coin at lower levels, buying the dip in short. 

Adding points to the bull team, the dog-themed memecoin is bouncing back from the support trendline and the $0.56 level signifying a lower price rejection. At present, the coin trades at $0.059, recovering 13.65% from the day’s low. 

Continuing the channel price trend, DOGE will likely bounce back in the coming days if it sustains above the $0.056 level. The reversal will retest the $0.69 level soon as the buyers reclaim their ground. 

On a contrary note, if the sell-off continues, the channel breakdown will prove catastrophic for Doge holders. 

Will Dogecoin Fetch $0.10?

Going against the previous analysis of a range breakout on the upside, the memecoin retests the support trendline after the fallout. However, the readiness of buyers to grab dogecoin at lower levels showcases strong trust within the community. This improves the possibility of a bullish reversal. However, Elon Musk’s favorite crypto can face opposition at the $0.069 and $0.075 levels. 

• DMI: The rising ADX showcases high momentum spurge with a huge bearish gap between DI lines indicating a distribution phase in motion.
• Exponential Moving Average: The sharp selling spree adds up to the negative downfall of all the crucial daily EMAs(20, 50, 100, and 200).