3 September 2024
The broader cryptocurrency market has endured significant corrections over the past six months, primarily driven by the two largest digital currencies: Bitcoin (BTC) and Ethereum (ETH). Dogecoin (DOGE), the leading meme coin, has not escaped this trend, experiencing a marked decline in value.
Dogecoin Price Faces 55% Decline Since March High
Since reaching a yearly high of $0.22 in March, DOGE has suffered a substantial drop of 55.9%, currently trading at approximately $0.0976. This decline is even more pronounced over longer time frames; according to CoinGecko data, Dogecoin is now 86% lower than its all-time high of $0.73 recorded in May 2021.
In the short term, Dogecoin has been underperforming compared to the overall crypto market, which has seen a 6.90% drop over the past week. During the same period, DOGE’s price fell by 8.8%, further illustrating its struggles.
However, there are emerging bullish signs that could pave the way for a recovery. Crypto analyst Ali Martinez recently pointed out a bullish divergence forming on Dogecoin’s 4-hour Relative Strength Index (RSI).
In addition, the analyst noted that the Tom Demark Sequential 9 (TD) indicator is flashing a buy signal, suggesting that a price rebound may be on the horizon.
Can DOGE Break Through $0.10?
As outlined by the analyst, these indicators suggest that the Dogecoin price could potentially surge above its current trading levels, with the $0.10 mark being a critical milestone not seen since August 24.
Achieving this level would signify a successful recovery of the token’s 50-day exponential moving average (EMA), which coincides with the $0.10 price point. However, if bullish momentum fails to materialize, there is a risk of a failed attempt to reclaim this key resistance.
Should DOGE successfully surpass the $0.10 threshold, bulls will then need to focus on the next significant hurdle at $0.107. This level is crucial for any further attempts to climb higher and tackle the next EMA.
If Dogecoin can navigate this resistance, it may be poised to retest the 200-day moving average at $0.11. A successful breakthrough at this level could signal a continuation of the recovery, potentially pushing DOGE toward the next resistance level of $0.13 on its DOGE/USDT daily chart.
Conversely, for the past almost four weeks, the Dogecoin price has found a significant support floor at $0.094, which prevented the token from crashing towards $0.080 again last week, as it did during the broader market crash on August 5.
What is certain is that despite these signals, bullish momentum is much needed for the coin to push higher resistance and consolidate above its previous support levels to continue on its path to retest the yearly highs.
Featured image from DALL-E, chart from TradingView.com