Dogecoin’s Road to Recovery: Is the Emerging Bullish Trend a Game Changer?

Dogecoin (DOGE) has been on a bit of a rollercoaster since December 11, 2023, hitting a new low today. But hold on, there might be a glimmer of hope in the form of a newly emerging bullish pattern.

Dogecoin’s Rollercoaster Ride

Let’s rewind a bit. On November 6, 2023, the DOGE price made a breakout move from an ascending parallel channel, reaching a high of $0.108 by December 11. However, the excitement was short-lived as the price took a nosedive, hitting $0.074 today.

But hey, here’s the twist in the plot. That $0.074 low? It’s more than just a number; it’s the key to our story. This dip created a lower wick (let’s call it the green icon), confirming the 0.618 Fib retracement support level and the resistance trend line of the ascending channel.

Technical Jargon and RSI Drama

Now, let’s talk tech. The daily Relative Strength Index (RSI) is like the mood ring of the crypto world. Unfortunately, our RSI isn’t showing any positive vibes right now. Readings below 50 and a downward trend indicate the bears are having a party, and currently, our RSI is falling and below 50. Cue the drama.

Predicting the Future: Bullish Signs Ahead?

Switching gears to the six-hour time frame – the moment of truth. There are whispers in the market that DOGE might be gearing up for a comeback. The six-hour RSI is dropping hints with a bullish divergence (yes, the green one), a classic sign that an upward swing might be on the horizon.

Adding to the optimism is Dogecoin’s price action featuring a double bottom – a bullish pattern that’s like the hero in our story. The fact that this heroic pattern is paired with those long lower wicks? Well, that’s just the icing on the cake.

The Million-Dollar Question: Will DOGE Bounce Back?

Now, for the grand finale. If this double bottom and the bullish divergence play out as expected, we could be looking at a 13% surge, with DOGE reaching the descending resistance trend line at $0.089.

But, and there’s always a but, if DOGE decides to break below today’s low of $0.074, consider the double bottom null and void. Brace yourselves for a potential 15% drop to the next support level at $0.067.

And that, my friends, is the thrilling tale of Dogecoin’s journey – will it be a comeback or a further descent into the crypto abyss? Only time will tell.

For BeInCrypto’s latest crypto market analysis, click here.