The Dogecoin price has recently experienced a steep decline, dropping from the $0.069 mark amidst the turmoil caused by the legal battle involving the US SEC and major crypto exchanges Binance and Coinbase. Despite this downward trend, the asset found support at the base of the bearish channel, with buyers adeptly absorbing the sell-off. Now the question is whether Dogecoin will recover from the baseline or continue to fall below the $0.050 threshold.
As Elon Musk mentioned DOGE in a tweet, the impact on the price remains uncertain. The Dogecoin price has retested the $0.065 breakdown, experiencing a further drop to the $0.056 level. However, increased buying at lower price levels has led to the formation of a tail, suggesting a potential reversal.
The 24-hour trading volume in Dogecoin currently stands at $911.5 Million, recording an impressive 271% gain. Moving within a bearish channel, Dogecoin is now approaching the support trend line after experiencing an intraday fall of 13.85%. As investors readily accumulate the coin at lower levels, the possibility of a bullish reversal increases.
Following the channel price trend, DOGE may bounce back in the coming days if it sustains above the $0.056 level. The reversal could retest the $0.69 level soon as buyers regain momentum. Conversely, if the sell-off persists, the channel breakdown could bring disastrous consequences for Doge holders.
The readiness of buyers to grab Dogecoin at lower levels highlights the strong trust within the community, boosting the chances of a positive price reversal. Nonetheless, the meme-inspired cryptocurrency could face resistance at the $0.069 and $0.075 levels.
The Directional Movement Index (DMI) indicates a rising ADX, showcasing a high momentum surge with a substantial bearish gap between the DI lines, suggesting a distribution phase in motion. Additionally, the sharp selling spree has contributed to the negative downfall of significant daily Exponential Moving Averages (EMAs), including the 20, 50, 100, and 200.
In summary, although the Dogecoin price has seen a considerable drop, the strong trust among investors and the readiness to buy at lower price levels could result in a bullish reversal. However, the cryptocurrency may still face obstacles at higher levels. Further market research and monitoring are crucial to ensure informed decisions in this fast-paced environment.
Source: Coingape
