Dogecoin Price Poised For More 12% Fall; Buy This Dip?

After experiencing a remarkable rally last week, the Dogecoin price turned downward from $0.15 resistance. As a result, the coin price triggered a temporary downfall and offered a pullback opportunity for buyers looking for reentry. Furthermore, despite a bullish outlook in the market today, altcoin surged by an insignificant percentage of 0.18. Thus, the prices are expected to extend their correction to lower levels.

Key points:

• The Dogecoin price breaks the $0.135 resistance
• The daily-RSI slope jumps into the overbought territory foretell an upcoming correction
• The 24-hour trading volume in the Dogecoin coin is $617.8 Million, indicating a 192% gain.

Source-Tradingview

The October end bullish growth in DOGE price reached a six-month high of $0.1572. This rally was backed by a number of events, such as improvement in the global market, increasing whale accumulation, and, most prominently, Dogecoin supporter Elon musk finalizing his deal with Twitter. 

However, the daily chart showed several higher price rejection candles near the $0.15 mark, indicating bullish momentum was exhausted. As a result, the memecoin triggered a short correction phase and fell 11% in the last three days.

Currently, the Dogecoin price trades at $0.127 and tries to sustain above the $0.236 Fibonacci retracement level at $0.12. However, if the selling pressure persists, the altcoin should drop another 12% to retest the combined support of 50% retracement level and $0.11 support.

The aforementioned level could offer a strong footing for buyers to resume the prevailing recovery. Moreover, the decreasing volume activity during this correction also signals a temporary pullback. 

Thus, interested buyers could enter this dip to grab DOGE at a discounted price. Furthermore, a bullish breakout from $0.136 will bolster buyers to surpass the swing high resistance of $0.152.

Technical indicator

RSI indicator: The daily-RSI slope dropped from the overbought region accentuates the prices trying to stabilize the last rally. However, the overall sentiment remains bullish as the indicator value currently stands at 72.4%.

EMAs: The massive distance between Dogecoin price and crucial EMAs(20, 50, 100, and 200) highlights explosive growth in a short span and the need for a retracement phase.

Dogecoin Price Intraday Levels

• Spot rate: $0.1229
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $0.136 and $0.152
• Support levels- $0.11 and $0.093