Over the past week, Dogecoin price has remained somewhat stagnant, trading below a local resistance of $0.063. As daily charts reveal several short-bodied candles, this indicates a lack of initiation from buyers or sellers to retake trend control. Despite the uncertainty, the DOGE price has not strayed from the falling channel pattern’s levels, confirming its importance to predict future prices.
While the support trendline of the channel pattern may shield DOGE price from a significant downfall, a breakout above the $0.063 resistance would likely suggest an upcoming relief rally. Currently, the 24-hour trading volume is $182.5 Million, signifying a 0.74% gain.
Dogecoin traders are undoubtedly working to stabilize price action following the considerable plunge on June 10th. The coin price, though, has found support at the lower trendline of the channel pattern, with buyers striving for higher ground. At press time, the Dogecoin price stands at $0.0618, experiencing an intraday loss of 0.43%. The daily chart displays increased price rejection at the immediate $0.063 resistance, which indicates that sellers persist in pressuring the coin price.
It seems likely that Dogecoin’s price could prolong the current consolidation until buyers regain their bullish momentum. Under a more pessimistic scenario, the price may retest the $0.056 support to entice more buyers at a discounted value. A retest to the channel pattern’s support trendline typically results in a considerable upswing back to the upper trendline. However, a bullish breakout from the $0.063 overhead resistance with daily candle closing would be the first signal for Doge traders to prepare for potential recovery. This breakout could provide the necessary stepping stone for buyers to climb higher and lead the price to a 12% gain, reaching the $0.07 psychological barrier.
The dynamic resistance of a 20-day Exponential Moving Average (EMA) could bolster the resistance power of the $0.063 level. The Directional Movement Index (DMI) shows the DI+ and DI- slopes are converging toward a bullish crossover, indicating a possible decline in bearish momentum.
As always, the presented content reflects the personal opinion of the author and is subject to market conditions. Conduct thorough market research before investing in cryptocurrencies, and keep in mind that the author or the publication accepts no responsibility for personal financial losses.
Source: Coingape
