Dogecoin price appears to be in recovery mode as it trades around an important technical support level, and there is accumulation of the meme coin by whales amid the ongoing correction in DOGE. This setup came into focus when crypto analyst Trader Tardigrade pointed out that the next target for DOGE would be $0.093.
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At the time of writing, DOGE is trading at $0.08268, with a 24-hour trading volume of around $1.01 billion and a market capitalization of $12.88 billion. The price has declined 1.81% over the last 24 hours, keeping Dogecoin below several important short-term resistance levels.
Dogecoin Price Finds Support in Ascending Channel
Crypto analyst TraderTardigrade noticed on September 14 that there is a possible movement towards $0.093 on the four-hour DOGE/USDT chart.
In the analysis, it has been stated that Dogecoin is trading in an ascending channel and has found support on its lower border for the second time. This is a vital point in the analysis, as it proves that buyers are defending the bottom of the channel.
It is forecasted by TraderTardigrade that the upper limit of the trading channel will serve as the next price objective for the asset, putting the target level at $0.093.
Before Dogecoin price can make its way up towards that level, the price should first break past the resistance zone in close proximity and generate sufficient buying force to overcome the midway point of the present range.
The movement towards the $0.093 level will be a significant recovery from the current price level, but falling below the lower channel support level may not be a good sign for the asset.
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50 WMA Becomes Key DOGE Support
This was then followed by Trader Tardigrade’s report of the second update on September 15, where he concentrated on Dogecoin’s daily chart and its 50 WMA.
According to the report, DOGE is currently testing the 50 WMA. The dynamic support level has been tested previously in different market responses and has always been followed by a bounce from the level.
The 50 WMA is being closely observed due to its potential significance in determining the general trend of an asset. Price staying above the moving average line and finding support close to this level may be interpreted by buyers as there are fewer risks on the downside at the moment.
Regarding Dogecoin, retaining this level might be a boost for further attempts to recover. A violation of it, in turn, would lead to a reversal of the technical pattern.
Dogecoin Faces Weak Short-Term Momentum
Although both the channel and the moving average can be supportive, other technical indicators suggest that Dogecoin does not have significant upside momentum yet.
Currently, DOGE is trading below its middle Bollinger Band, which is located at $0.08543. Its upper boundary is around $0.09159, while its lower boundary is close to $0.07928.
Therefore, Dogecoin is currently trading in a fairly wide range. Its break above $0.08543 may be an indication of the first bullish movement toward $0.09159.
Failing to recapture the middle Bollinger Band may result in further pressure on DOGE, and thus, a revisit of the lower Bollinger Band at $0.07928 becomes likely.
In addition, the Relative Strength Index is suggesting that the current buying strength is not substantial either. DOGE’s RSI stands at 48.29 at the moment, which is below the neutral 50-level and below its own signal line at 55.27.
A recovery of RSI above 50 may help the bull case, especially when it occurs in conjunction with a break above the middle Bollinger Band.
DOGE Whales Continue Accumulating
Yet another reason for the potential rebound is related to whale accumulation.
Cryptocurrency analyst Ali Martinez pointed out that the large Dogecoin whales managed to acquire more than 240 million DOGE during the latest correction in the coin’s price.
While the accumulation by the whales doesn’t guarantee a rise in the price of the coin, it might become a crucial factor along with the technical support.
The actions taken by large holders may also impact the supply of coins on the market. If large amounts of DOGE are flowing to large wallets and stay there, selling pressure may go down because these large holders do not plan to sell their coins soon.
As for the overall Dogecoin market, here lies a key difference. While short-term metrics point to a lack of momentum, large holder accumulation and strong technical support provide some arguments for optimism.
What Happens Next for Dogecoin Price?
Dogecoin’s next move will be determined by how it manages to sustain its key support levels amid short-term bullishness.
The key level to look out for will be the $0.08543 mid Bollinger Band. Any break above that point will make things favorable technically and will bring $0.09159 and $0.093 into focus.
At $0.093, the upside level highlighted as a significant target by Trader Tardigrade is noted. This level will be a confirmation of DOGE rising if there is an ability to move above this level with higher volume.
From the downside, the 50 WMA and the lower side of the ascending channel are important for DOGE investors. A clear breach of these levels may mean that the bearish pattern continues moving downwards.
Dogecoin price is still at an important crossroads for the time being. The fact that the RSI does not show momentum on the part of buyers indicates that the buyers have not yet seized control fully, while several other factors indicate that the case for a recovery has not been ruled out.
In short, what can be said is that it is not enough for DOGE to just bounce again; it needs confirmation through holding above the 50 WMA and getting back up to $0.08543 before moving toward $0.093.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
