Dogecoin saw a notable gain in a recent rally but it appeared to have lost some ground due to a small retracement in the past few days. It is currently in red with a 1% drop in the past hours.
Doge recently found support above $0.057 after initiating drops for two months. It took off that support last week and managed to test the $0.075 level, which later held as resistance due to a sharp price rejection on Thursday.
The buying pressure looks suspended at the moment, but we can expect it to resume bullish as soon as the buyers show more commitment. If they fail, the price could drop further until they find a solid level to initiate a fresh buy. It is currently trading at a resistance.
Looking at the weekly market structure, Doge remains in a downward range from a mid-term perspective. As shown on the daily chart, the price has been respecting the mid-line of the descending channel since the price broke down in April.
After some months, it revisited this mid-line in July and this week with a rejection. If this bearish pattern repeats, we should expect a heavy sell-off in the upcoming weeks. Such a setup could plunge the price back to the channel’s lower boundary.
In case Doge manages to flip through the mid-line of the channel, which has been serving as resistance for months, the channel’s upper boundary would be the next buy target area for the leading meme coin.
DOGE’s Key Level To Watch
Doge currently faces resistance at $0.0867. An increase above this level should bring a recovery to $0.075. The $0.084 resistance level is next before reaching $0.09 around the upper boundary. Breaking above the channel could set the price for a bigger explosion.
The support level to watch for drops is $0.0643. A crack below $0.0571 could activate more selling to $0.053.
Key Resistance Levels: $0.075, $0.084, $0.09
Key Support Levels: $0.0643, $0.0571, $0.053
- Spot Price: $0.0681
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.