Dogecoin crashed to a six-month low yesterday after witnessing many roller coasters in the past months. However, due to a rejection, it has recovered well from the crash and now posts double-digit daily gains.
Following a new drop from the $0.2 level two weeks ago, Doge resumed selling and broke down to a new multi-month low of $0.129 yesterday amid rising supply. Marking this level as support, a rejection occurred, and the price quickly recovered with a dragonfly candle close.
That triggered a buy today and is now changing hands at $0.15. Closing today’s price with an engulfing bar could fuel a major move above last week’s high, facilitating a short-term retracement before sliding back.
If such a retracement leads to another buying phase in the long term, the trend may reverse completely after fully recovering to the peak level, marked at $0.49 last December. That should trigger another major rally capable of bringing back the bulls in the market. But from the look of things, the market is still following strong negative sentiments daily.
Coming back to the bearish scenario, Doge must retake the recent low before we can consider an extension. Technically, the latest recovery indicates a slight break in selling. The bears will likely resume pressure.
DOGE’s Key Level To Watch
The key entry level to watch for another drop lies at $0.17. If the latest recovery brings us back above $0.18 and the $0.2 resistance, Doge may rally briefly to the $0.24 resistance and even $0.29 before rolling back.
In the next drawdown, Doge may face hurdles at the $0.142 and $0.128 support levels. A successful drop there could roll the price to $0.115.
Key Resistance Levels: $0.18, $0.2, $0.24
Key Support Levels: $0.142, $0.128, $0.115
- Spot Price: $0.16
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.