Dogecoin Price to Surpass $0.85? Bullish Pattern Set Stage for Recovery Rally

The crypto market has been under a bearish spell lately, resulting in a minor correction in the ongoing recovery rally of Dogecoin. Over the past week, popular memes experienced a drop from $0.083 to the current trading price of $0.075, registering a loss of 10.4%. However, this downward slide seems to be part of a bullish continuation pattern known as a ‘flag‘ when observed on the four-hour time frame chart. This pattern could potentially serve as a useful tool for traders looking to enter at a better price.

Also Read: Is Dogecoin Price Ready to Reclaim $0.1?

Dogecoin Price Daily Chart

• A bearish crossover between the 20 and 50 EMA hints at the continuation of ongoing correction
• The falling DOGE price could offer a pullback opportunity at a lower support trendline.
• The 24-hour trading volume in the Dogecoin coin is $383.5 Million, indicating a 31% gain.

Source-Tradingview 

Currently, the DOGE price is fluctuating within the flag pattern’s channel structure. The coin price has bounced thrice from the pattern’s support trendline and twice from the overhead resistance, reflecting its significant influence on traders. Flag patterns often signify a ‘breather’ after a significant price move and are usually followed by a continuation of the previous trend. 

With a 4.6% intraday drop, the coin price retested the lower support trendline. A possible rebound from the aforementioned trendline could bolster buyers’ confidence to challenge the overhead resistance. Until this resistance is intact, the Dogecoin may prolong the retracement fall. However, if broken, it could potentially signal a strong buying momentum, prompting more traders to join the rally.

Should crypto buyers manage to break past this resistance, the coin price should rise 8%, allowing it to surpass the significant psychological barrier of $0.085.

Could DOGE Price Retrace its Steps Back to $0.635?

The Dogecoin price is currently following a recovery rally, significantly bolstered by the strength of a key support trendline. However, amid an ongoing correction phase, it appears that sellers are attempting to breach this crucial support. A successful breach could spark an acceleration of selling pressure, setting Dogecoin into a significant correction phase. Should this occur, the extended downfall could potentially send the prices tumbling down to $0.063, followed by $0.053.

• Exponential moving average: The coin price trading above the 200 EMA indicates the short-term trend is bullish.
• Relative Strength Index: The RSI slope below 40% signals the selling momentum in the market is growing, and the asset price could continue to fall.