Dogecoin (DOGE), the trailblazer of meme cryptocurrencies, has mirrored Bitcoin’s recent volatility, leaving investors wondering what’s next. After a 16% drop between July 1st and 5th, DOGE has shown signs of life with a 6.31% rise today. However, it remains a distant echo of its May 2021 glory, trading at just 15% of its all-time high.
Technical analyst Blue Crypto has weighed in on DOGE’s current market landscape, highlighting crucial support and resistance levels to watch. According to Blue Crypto, DOGE is currently testing a critical support zone at $0.107. This “MAIN level” is a pivotal point for maintaining a bullish outlook. Holding above this threshold is crucial for DOGE to avoid a bearish shift.
Bullish Breakout or Bearish Breakdown?
If DOGE can successfully break above $0.1086 and establish it as new support, Blue Crypto anticipates a potential upswing, with the next target being $0.1142. This would mark a significant resistance level, and achieving it could signal a bullish trend continuation.
However, Blue Crypto warns of a potential bearish scenario if DOGE fails to hold the $0.10745 support. A drop below this level could trigger a domino effect, leading to further price decline and heightened volatility.
Technical Indicators Paint a Bearish Picture (But With a Hint of Hope)
Looking at other technical indicators on the daily timeframe, the picture leans towards a bearish trend. Both the 50-day and 100-day Exponential Moving Averages (EMAs) sit above the current price, suggesting persistent selling pressure and a downtrend. Furthermore, the 50 EMA residing below the 100 EMA reinforces the market’s weakness and lack of bullish momentum.
The Relative Strength Index (RSI) currently sits around 39.30, placing it in the oversold territory and indicating a prolonged period of bearishness. However, it also hints at a potential for a rebound if selling pressure eases and buyers return.
The Awesome Oscillator (AO) and the MACD (Moving Average Convergence Divergence) also paint a primarily bearish picture. However, a possible convergence between the MACD lines suggests a potential bullish crossover in the near future, which could signal a shift in momentum.
Dogecoin’s Future: A Balancing Act
Only time will tell if DOGE can break free from its current bearish grip. The coming days will be crucial in determining whether the meme coin can find support at $0.107 and potentially embark on a bullish run, or succumb to further selling pressure.
Also Read: Dogecoin (DOGE) to $2? Analyst Predicts Memecoin Mania, But Can DOGE Really Moon 1600%
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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