Will DOGE Price Rebound From $0.055 Multi-Month Support?

Despite the prevailing uncertainty in the cryptocurrency market, the Dogecoin price has displayed notable resilience, maintaining its position above the $0.055 support. This level has notably acted as a strong foundation for the coin since June 2022. As the memecoin consolidates above this threshold, its daily chart indicates a presence of a lower price rejection candle, a bullish sign that suggests buying momentum is still alive and kicking. Could this be the catalyst for a notable recovery?

Also Read: Will DOGE Price Reclaim $0.07? This Chart Pattern Provides Insight

Will the Recovery Trend hit $0.0775?

• The Dogecoin forms a no-trading zone between the $0.068 and $0.055.
• A bullish breakout from the overhead trendline set the DOGE price for a 30% rally
• The 24-hour trading volume in Dogecoin is $133 Million, indicating a 17% loss

Source-Tradingview 

The Dogecoin price in the weekly chart reflects a transition from a downtrend to a more sideways movement, especially pronounced above the $0.055 level. This support level has been tested and held firm on multiple occasions since last year, emphasizing the significant buying interest at this price point. 

Historically, when assets traverse laterally following a notable decline, it’s often indicative of an accumulation phase and a major market bottom. While the $0.055 is bolstering buyers with firm support, the buyer’s attempt to recover is getting hampered by two downsloping trendlines.

At the moment of writing, the DOGE price is trading at $0.059, wedged in a narrowing zone between the more acute trendline and the steadfast $0.055 support. This narrow range will soon lead to a decisive breakout from either side. 

With the $0.055 support having a track recorded to push the price higher, the buyers could likely break out the overhead trendline. The post-breakout rally would likely push the coin’s market value 30% around to hit the upper trendline around $0.0775.

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

Is DOGE Price Threatened for Further Correction?

Despite the dual safety nets provided by the long-coming support trendline and the $0.055 zone, this memecoin’s tepid response in terms of a significant rebound underlines a certain fragility in its bullish momentum. If the broader market sentiment veers towards bearishness, this could apply enough pressure for sellers to break below the aforementioned supports. A weekly close beneath this pivotal line may unleash a more pronounced decline for the meme-inspired crypto

• Moving Average Convergence Divergence: Multiple crossover between the MACD(blue) and signal(orange) accentuates the indecisive nature of market participants.
• Exponential Moving Average: The 20 EMA slope in the weekly chart offers additional resistance against buyers.