Home >web3.0 >Dogecoin (DOGE) Price Analysis: Stasis Broken, But Can the Meme Coin Reverse the Trend?

Dogecoin (DOGE) Price Analysis: Stasis Broken, But Can the Meme Coin Reverse the Trend?

WBOY
WBOYOriginal
2024-09-20 06:45:29417browse

Dogecoin [DOGE] has surged 2% in the last 24 hours, buoyed by Bitcoin’s rise above $61K. Currently trading at $0.10377, DOGE has held the $0.10 support

Dogecoin (DOGE) Price Analysis: Stasis Broken, But Can the Meme Coin Reverse the Trend?

Dogecoin [DOGE] has seen a 2% surge in the last 24 hours, riding high on Bitcoin’s [BTC] climb past the $61K mark.

Currently, trading at $0.10377, DOGE has held the $0.10 support for the third time since late August. Previous attempts have seen strong resistance- can Dogecoin break free and reverse the trend this time?

Understanding the significance of $0.10 is crucial

Source : TradingView

On the daily chart, Dogecoin has been consolidating for a month. After testing $0.14 during the late July rally, DOGE has trended bearish. A double-top formation was observed around this level.

Now, as the memecoin attempts to rally once again, strong resistance can be expected at $0.11. If this level is breached, DOGE could rally toward the next resistance zone at $0.12.

For a price correction, DOGE must break resistance at $0.11, which is feasible only if it holds support at $0.10.

Meanwhile, market optimism has surged following the Fed’s rate cut announcement, driving major coins upwards. DOGE has also seen a 10% surge in the last seven days.

According to AMBCrypto, sustaining this momentum is crucial, otherwise if it proves to be a temporary blip, a significant retracement could push DOGE back to $0.08.

The significance of this support level is underscored by the chart below. If bulls retreat, about 1 million holders with 12 billion tokens could face losses, increasing the risk of retracement if they aim to break even. Conversely, a stronger push could move around 391,000 holders into profit, with FOMO potentially keeping them invested for the long term.

Source : IntoTheBlock

Clearly, Dogecoin is at a crucial juncture. For the memecoin to approach its previous $0.14 high, other conditions must align.

If confidence remains high among stakeholders, a potential reversal toward that level might be imminent. So, what are the odds?

Dogecoin bulls need to strategize for a breakout

For a memecoin, long-term growth is often stifled by day-traders cashing out after each market peak.

This pattern is evident in DOGE’s price movements. For example, the last time Dogecoin closed at $0.11, a surge of tokens was deposited into exchanges, causing a 2% drop the following day.

This pattern repeats whenever DOGE approaches a market top, with high inflows acting as resistance.

Source : IntoTheBlock

Hence, for DOGE to push past resistance, bulls must absorb the selling pressure while maintaining long-term confidence by holding onto their coins.

In short, while current market optimism has kept DOGE above the $0.10 support, AMBCrypto notes that a sustained climb to the $0.14 high will require a significant push from the bulls to trigger a breakout.

The above is the detailed content of Dogecoin (DOGE) Price Analysis: Stasis Broken, But Can the Meme Coin Reverse the Trend?. For more information, please follow other related articles on the PHP Chinese website!

Statement:
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn