Dogecoin (DOGE) Price Analysis: Neutral Zone Trading Precedes Potential 50% Upswing

Dogecoin (DOGE) has faced significant declines recently. As of June 27, 2024, DOGE is trading at approximately $0.122

Dogecoin (CRYPTO: DOGE) faced further declines recently, trading at around $0.122 as of June 27, 2024, showing a 2% drop over the past 24 hours.

The trading volume also fell by 22.66% over the same period, indicating reduced market activity.

Dogecoin’s value declined by 26.11% over the past month, highlighting a challenging phase for the popular meme coin.

In a recent analysis, crypto analyst LongtermX offered insights into potential price movements of Dogecoin against Tether.

The technical analysis focused on key aspects of price behavior and suggested trading strategies, aiming to provide clarity to DOGE investors amidst the market’s volatility.

LongtermX indicates that Dogecoin is currently trading in a neutral zone, positioned just above a crucial support level at $0.12097.

This classification is based on a cloud indicator used to gauge market sentiment: prices above the yellow cloud are deemed bullish, within or just below the yellow cloud are neutral, and below the red cloud are bearish.

Future Predictions for Dogecoin

Highlighted on the chart is a descending trendline, which serves as a significant resistance point for Dogecoin’s price.

According to the analyst, a decisive break and close above this trendline is necessary to confirm a bullish breakout.

If DOGE manages to achieve this, LongtermX predicts a substantial upward movement, targeting the golden pocket at $0.18.

This level represents the 0.618 Fibonacci retracement of the previous major move.

This potential move from the current price to $0.18 would mark a 50% increase, a feasible target based on LongtermX’s analysis.

However, he emphasizes that this trade should only be considered if the price action confirms a breakout above the trendline, ensuring the move is supported by market momentum.

The analysis also comes with a cautionary note. If Dogecoin reaches the $0.18 target but fails to sustain this level, it likely signals a potential reversal, continuing the bearish trend.

In this scenario, traders should be prepared for the price to drop significantly, potentially testing lower support levels below the red cloud.

Dogecoin recovered on June 25 as bulls pushed the price back above the $0.120 support level. Currently priced at $0.123, for a strong recovery, bulls need to drive the price above the 20-day EMA at $0.131.

If the price reaches the 50-day EMA at $0.142, the range-bound action between $0.12 and $0.175 will continue for a few more days. However, if the price drops below $0.12, it would suggest that bears are taking control, potentially leading to a decline toward $0.10, where bulls might attempt to halt the fall.

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