In the midst of the ongoing market correction, Dogecoin (DOGE) has observed a significant pullback from the $0.107 resistance level established in mid-December. This correction, leading to a price drop to $0.09, is viewed as a healthy retracement based on the Fibonacci retracement level, suggesting a strong potential for the continuation of an upward trend.
The potential conclusion of the correction trend could be signaled by a breakout from the Flag pattern. A bullish breakout from this pattern would signify the end of the correction trendline. Dogecoin’s 24-hour trading volume stands at $2.58 billion, reflecting a notable 58% gain.
Despite a relatively quiet start to 2024, the Dogecoin price trend appears to prolong the correction phase, hinting at a substantial decline. However, this correction phase also implies the possibility of a rebound when it reaches a potential retest zone.
The short-term formation of a falling channel pattern within the correction phase completes a flag pattern, aligning with the prevailing uptrend.The current minor pullback presents an entry opportunity for pullback traders, with the 38.20% Fibonacci level highlighting a potential entry point at $0.088.
The ongoing correction accounts for a drop of 16.2% as the DOGE buyers fail the dominance at the psychological mark of $0.10.
Dogecoin Faces Downtrend With Potential Retest At Key Support Levels
As of the latest update, the price of DOGE continues its downward trajectory within a defined channel, indicating a potential retest at crucial support levels of $0.88 and $0.83, contingent upon sustained selling pressure. However, a swift recovery could ensue if the immediate support at $0.88 holds firm. Conversely, a downside scenario poses a potential challenge to the $0.77 support level.
Amidst the New Year rally, heightened expectations surround a bullish trend in the overall cryptocurrency market. With a potential surge in Bitcoin prices, meme coins are poised to gather additional momentum to reach new heights.
As the leading meme coin, Dogecoin’s prices are expected to soar, propelled by robust community support. Consequently, a bull run targeting the $1.4 milestone is foreseen in the coming months.
The Moving Average Convergence/Divergence (MACD) reveals a bearish crossover between MACD and the signal, indicating an ongoing correction trend. Meanwhile, the Bollinger Band indicator’s narrow range underscores escalating volatility and market uncertainty.