Dogecoin Price Analysis: Should you Buy $DOGE at $0.072 Dip?

Dogecoin Price Analysis: in response to increasing bearishness in the crypto market, Dogecoin price witnessed a correction phase for the past two weeks. From the peak of $0.838, the coin price tumbled nearly 12% to reach the current trading price of $0.0738. However, a keen look at the 4-hour time frame chart indicates this correction is the pullback of a higher trend. Is this an opportunity to accumulate?

Also Read: Dogecoin Developer Advice Users to Withdraw Funds from Huobi

Dogecoin Price Daily Chart

• The correction mode in DOGE could witness strong demand pressure at the rising support trendline.
• A bullish reversal from the support trendline could set the memecoin for a 13.5% upswing.
• The 24-hour trading volume in the Dogecoin coin is $329.5 Million, indicating a 9.48% gain

Source-Tradingview 

The Dogecoin price correction phase has recently retested the support trendline of a broadening wedge pattern. This dynamic support of the chart setup has bolstered buyers to maintain an uptrend for the past two months, offering a suitable platform to accumulate this memecoin.

On August 7th, the falling prices showed a neutral candle(Doji candle) at the support trendline, signaling the market uncertainty or weakening of bearish momentum. If the buyers manage to stay above the lower trendline, the coin price could kick-start a new recovery cycle from this point.

A potential recovery needs to overcome two significant resistance(falling trendlines) to give better confirmation for a price rally. A bullish breakout of the overhead resistance could offer a staggered entry opportunity with a price target above $0.84.

[converter id=”doge-dogecoin” url=”https://coingape.com/price/converter/doge-to-usd/?amount=1″]

DOGE Price Threatened for a Correction to $0.635?

If the overhead supply pressure persists, the Dogecoin sellers could attempt a breakdown below the long-coming support trendline. This breakdown with daily candle closing will offer traders an opportunity to short sellers as the prices will likely witness a major correction. The possible downfall could lead the coin price to $0.063.

• Exponential moving average: The coin price trading above the 200 EMA reflects the short-term trend and remains bullish.
• Relative Strength Index: A bullish divergence in the 4-hour RSI slope as the correction phase bottoms near $0.0725 support increases the possibility of a bullish reversal.