Dogecoin (DOGE) has faced significant declines recently. As of June 27, 2024, DOGE is trading at approximately $0.122, showing a 2% decrease over the past 24 hours. Additionally, its trading volume has dropped by 22.66%, indicating reduced market activity. Over the past month, Dogecoin’s value has plummeted by 26.11%, highlighting a challenging phase for this popular meme coin.
In a recent analysis, crypto analyst LongtermX offered insights into potential price movements of Dogecoin against Tether. His technical analysis focused on key aspects of price behavior and suggested trading strategies, aiming to provide clarity to DOGE investors amidst the market’s volatility.
LongtermX indicates that Dogecoin is currently trading in a neutral zone, positioned just above a crucial support level at $0.12097. This classification is based on a cloud indicator used to gauge market sentiment: prices above the yellow cloud are deemed bullish, within or just below the yellow cloud are neutral, and below the red cloud are bearish.
Future Predictions for Dogecoin
Longterm highlights a descending trendline on the chart, a significant resistance point. The analyst asserts that a decisive break and close above this trendline are necessary to confirm a bullish breakout. If DOGE can achieve this, LongtermX predicts a significant upward movement aiming for the golden pocket at $0.18. This level represents the 0.618 Fibonacci retracement of the previous major move.
This potential move from the current price to $0.18 would mark a 50% increase, a feasible target according to LongtermX’s analysis. However, he emphasizes that this trade should only be considered if the price action confirms a breakout above the trendline, ensuring the move is supported by market momentum.
The analysis also comes with a cautionary note. If Dogecoin reaches the $0.18 target but fails to sustain this level, it likely signals a potential reversal, continuing the bearish trend. In this scenario, traders should be prepared for the price to drop significantly, potentially testing lower support levels below the red cloud.
Dogecoin recovered on June 25 as bulls pushed the price back above the $0.120 support level. Currently priced at $0.123, for a strong recovery, bulls need to drive the price above the 20-day EMA at $0.131.
If the price reaches the 50-day EMA at $0.142, the range-bound action between $0.12 and $0.175 will continue for a few more days. However, if the price drops below $0.12, it would suggest that bears are taking control, potentially leading to a decline toward $0.10, where bulls might attempt to halt the fall.
Related Readings | Solana’s Volume Mystery: $100B to $7B in a Day
This news is republished from another source.
