Here’s Why Dogecoin Price Dip to $0.8 May Bolster 25% Upswing

Dogecoin Price Prediction: The current downtrend in Dogecoin price takes on a sideways shift as the buyers hold the fort at $0.75. This consolidation teases a reversal for meme coins if the buyers complete the double-bottom pattern. Despite the 8.5% decline over the past week, the DOGE price trend teases a reversal rally with a 30% upside potential. So, should you consider buying this meme coin or wait for the market slowdown to end?

Dogecoin Price at a Crucial Reversal Spot

• The DOGE price trades near the 50% Fibonacci level and teases a double-bottom reversal.
• The pullback phase warns of a death cross if the prices succumb below the 200-day EMA.
• The 24-hour trading volume in Dogecoin is $2.71 Billion, indicating a 16% loss.

The Dogecoin price downturn extended into early 2024, as hopes for a rally fueled by the Bitcoin Spot ETF were dashed. This setback significantly impacted Doge value, which tumbled from its peak of $0.107 to find support at the crucial 200-day EMA level, marking a steep 25.5% decline.

After the recent downturn, buyers have been actively trying to stabilize the market, leading to a period of indecisive, sideways trading for Dogecoin. Presently, the coin price trajectory is hovering near the 61.8% Fibonacci retracement level, showing signs of a potential bullish resurgence, possibly forming a double-bottom pattern.

However, the fate of Dogecoin remains uncertain and heavily contingent on the broader market trends. If the current market sluggishness persists in the upcoming weeks, there’s a risk that memecoin could break below the crucial 200-day EMA support. 

This scenario could trigger an increased supply in the market and potentially lead to a further 17.5% decline in Dogecoin’s value to around $0.066.

On the flip side, a rejuvenation of positive sentiment towards this popular meme coin, possibly fueled by robust community backing, could pave the way for a bullish reversal. 

Under such circumstances, the coin price may breach the $0.0877 neckline resistance of double bottom to buyers with a suitable launchpad. The post-breakout rally could surge the DOGE price by 22%, to a potential target of $0.107.

Technical Indicators

• Exponential Moving Average: The bearish crossover of the 20-day and 50-day EMA signals a short-term bear phase.
• Moving Average Convergence Divergence: The MACD and signal lines are ready to give a bullish crossover in the daily chart.

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