Crypto analyst Trader Tardigrade pointed out that Dogecoin (DOGE) is exhibiting a pattern of Double Bottom together with RSI Bullish Divergence. DOGE forms two equal lows as RSI charts higher lows. Tardigrade believes that if Dogecoin manages to bounce back, it could pave the way for a prolonged period of bullish market sentiment and price appreciation
Dogecoin is currently trading at $0.125125, with a 24-hour trading volume of $51.48 billion. The coin’s market cap stands at $18.08 billion, with a market domination of 0.79%. Over the last day, DOGE has seen an increase of 4.94% in its price.
Dogecoin Targets $0.07 Amid Support Breach
Despite this price increase, Dogecoin (DOGE) has recently breached the lower boundary of its upward trend channel, marking a significant shift in its medium to long-term trajectory. This breach suggests a potential slowdown in its ascent or even the onset of a more sideways movement in the near future.
Technical analysis reveals that the cryptocurrency formed a bearish head and shoulders pattern, confirmed by its drop below the critical support level at $0.13. Analysts now foresee a probable continuation of this downtrend, with targets potentially extending down to $0.07 or lower.
The breach of the $0.13 support level indicates a heightened likelihood for further declines. Any attempts at recovery are likely to be pushed back firmly at this level, as indicated by recent market dynamics.
Volume balance has also been negative, indicating that DOGE prices are falling more than they are rising. This shift underscores waning investor confidence and decreasing optimism in the market.
The RSI has dropped below 30 after weeks of downward price action, which sets the stage for DOGE’s substantial negative momentum. This might indicate that further declines unless there is a vital turn in market sentiment.
Changelly’s insight reveals that Dogecoin is anticipated to decline by approximately 2.04% on June 26, 2024. This projection is also consistent with current market sentiment as recognized by Changelly, mostly bearish, evidenced by a notable Fear & Greed Index score of 51 (Neutral).
However, in expectation of a bear market scenario for Dogecoin, traders and investors should carefully monitor key support levels as well as market sentiment indicators for potential trading strategies.
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