September 28, 2022

Dogecoin (DOGE): Traders Can Capitalize on This Support to Stay Profitable

The previous bullish run saw Dogecoin’s breakout opening the road beyond the 9-month trend-line support. This resurge saw the meme coin accelerating its growth beyond the 20-50-200 Exponential Moving Average on the daily timeframe.

The volatile escape from an ascending triangle formation met a stiff obstacle at $0.087. This revival might meet the bounce-back zone around the $0.066 – $0.065 mark. While publishing this post, DOGE traded at $0.069, dropping more than 14.96% within the previous 24 hours.

Dogecoin Daily Timeframe

The buying resurgence from its 15-month support at $0.049 – $0.052 helped the altcoin to keep sideways action on the daily chart. Meanwhile, buyers battled to overcome constraints of the $0.071 mark.

As buying momentum seems to build up at this mark, the latest growth formed an ascending triangle on DOGE’s chart.

The altcoin might secure dependable grounds at $0.065 – $0.066 considering bullish reversal actions within the last month. A break beneath this value area might see the altcoin in a discovery mode, reiterating the bearish superiority.

Nevertheless, buying intervention around this mark might help bulls escape more declines. Buyers would target to trigger a recovery to the short-term Exponential Moving Average at $0.73.

Reasoning

The Relative Strength Index eventually dropped beneath the equilibrium, revealing a bearish superiority. The bulls should keep the support at 43 to maintain the reversal possibilities.

Surprisingly, the on-balance volume and the Chaikin money flow formed higher troughs within the previous week. This outlook confirmed bullish divergences chances with DOGE’s price action. However, the ADX showed the altcoin was yet to highlight a massive directional trend.

Final Thought

Dogecoin’s decline beneath the short-term Exponential Moving Averages and $0.07 has welcomed sluggish tendencies in the short-term. A possible rebound beyond this area might confirm potential revivals.

Targets would stay as highlighted. Meanwhile, the meme coin has a 70% correlation with BTC. Therefore, enthusiasts should watch Bitcoin’s moves to complement the technical indications.

Bears dominated the crypto spectrum during this publication, with assets recording continued slumps. Market players can expect more price drops in the coming sessions. However, time will uncover everything.

Stay tuned.