Dogecoin has shown remarkable tenacity in the face of the current market turmoil, holding its position above the $0.055 support level. Since June 2022, this level has notably served as the coin’s solid base.
The memecoin’s daily chart shows the presence of a lower price rejection candle, a positive indication that signifies purchasing momentum is still strong, as it consolidates above this barrier. Might this serve as the impetus for a significant comeback?
Will $0.0775 be the Recovery Trend’s peak?
A no-trading zone for Dogecoin is formed between $0.068 and $0.055.
Holding Strong: DOGE and the $0.055 Support – Will it Rebound?,Holding Strong: DOGE and the $0.055 Support – Will it Rebound?
The above trendline provided a bullish breakthrough, which caused the DOGE price to rise 30%.
With $133 million in 24-hour trading activity, Dogecoin has lost 17% of its value.
The weekly chart of Dogecoin’s price shows a shift from a downward trend to a more horizontal movement, which is particularly noticeable above the $0.055 mark. Since last year, this support level has been put to the test and stayed steady several times, indicating strong buying interest at this price.
In the past, assets that transverse laterally after a significant loss are frequently a sign of an accumulation period and a significant market bottom. Two downward trendlines are impeding the buyer’s attempt to rebound, even if the $0.055 is providing strong support for the purchasers.
It is possible for the buyers to break over the overhead trendline given that the $0.055 support has a track that has been documented to drive the price higher. The coin’s market value would probably rise 30% after the breakthrough to reach the upper trendline, or $0.0775.
Is a Further Correction to the DOGE Price Threatened?
The long-term support trendline and the $0.055 zone serve as two safety nets, but this memecoin’s lacklustre response in terms of a notable comeback highlights a certain fragility in its bullish momentum.
Sellers may see sufficient pressure to breach below the previously outlined supports if the overall market attitude tilts more towards bearishness. A weekly closure below this crucial level might trigger a sharper drop for the cryptocurrency with meme influences.
Holding Strong: DOGE and the $0.055 Support – Will it Rebound?,Holding Strong: DOGE and the $0.055 Support – Will it Rebound?,Holding Strong: DOGE and the $0.055 Support – Will it Rebound?