October 31, 2023
Published 25 seconds ago
Dogecoin buyers have shown a strong affinity for an ascending trendline that has acted as a dynamic support over the past two years. The most recent bounce off this line happened on October 19th, pushing the price from $0.057 to $0.069—a noteworthy 21.3% gain. Despite this positive momentum, the question lingers: Can this memecoin maintain its bullish trajectory amid the prevailing market uncertainties?
For the past six months, the Dogecoin price has been in a consolidation phase, bouncing off an ascending support trendline around the $0.055-$0.06 range on three occasions. These reversals suggest that buyers are active at these levels, seeing them as attractive entry points.
In addition, the sideways movement has also led to the formation of a bullish reversal pattern ‘Double Bottom‘ pattern. Fueled by this pattern and the broader market recovery, the Doge has risen to a current trading price of $0.69.
While the continuation of this recovery seems valid, the coin experienced a minor pullback after hitting resistance around $0.075. If the asset manages to hold above the immediate support of $0.067, the buyers could extend its recovery by another 20% to reach the pattern’s neckline at $0.085.
A break above this neckline would be a strong bullish signal, potentially initiating a rally beyond the $0.1 psychological barrier.
Despite these optimistic short-term projections, the asset is expected to meet significant selling pressure around the $0.085 mark. This is due to the confluence with a downsloping resistance trendline that has historically triggered substantial corrections. If the asset begins to show signs of rejection at this level, it may bolster the continuation sideways trend.