For more than a week, the Dogecoin price was caught under a $0.063 resistance level and showed signs of uncertainty. However, recent news suggests that the memecoin’s price may be rebounding due to increased accumulation pressure among investors, following the support trendline of the channel pattern.
An improved broader market sentiment also seems to be lending a helping hand, as the DOGE price managed to finally breach the critical $0.0632 resistance mark. This event came after Elon Musk refuted claims of owning pump-dump Dogecoin wallets.
Examining the Dogecoin price daily chart, it is evident that the current downtrend is governed by a falling channel pattern. Amid the early June sell-off, the coin’s price plunged to the pattern’s support trendline. Interestingly enough, it rebounded as the buying pressure from investors increased.
Over the past seven months, the DOGE price has bounced back three times from this support, with each reversal triggering a significant recovery. It seems that the recent reversal on June 10th could be a sign of the beginning of a new bull cycle within the pattern.
With a 4.2% price jump, investors can now see the nearest significant resistance of $0.063 being breached. This breakout could provide the first signal for recovery, potentially reaching the $0.095 mark if sustained buying continues. A bullish breakout from the $0.0632 resistance can flip this barrier into viable support. If the DOGE price closes the daily candle above the $0.0632 flipped support today, it could set a foundation for climbing even higher.
However, investors should be aware that while the ideal target for this pattern remains at $0.095, they may face in-between resistance at $0.075, followed by $0.083. The market needs to show continued positive momentum for these levels to be achievable.
Additionally, the DOGE price has surged above the 20-day exponential moving average (EMA) for the first time in two months, giving an extra edge to long traders. A bullish crossover between the moving average convergence divergence (MACD) and the signal also gives further confirmation for a possible bullish upswing.
It is essential to note that the presented content contains the personal opinion of the author and is subject to market conditions. It is always advisable to do your market research before investing in cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial losses.
Source: Coingape
