Dogecoin has been on a bit of a rollercoaster lately. After a small price bump thanks to some general crypto market optimism, it’s been facing some bearish pressure again. But don’t count DOGE out just yet! Some analysts think things are looking up.
A Key Technical Move Suggests a Bottom
Dogecoin has been struggling to stay above $0.20. However, a technical analyst known as Trader Tardigrade spotted a significant move on the DOGE daily chart that suggests a possible bottom is in. This move is important because it’s the first time DOGE has successfully recovered from a previous price breakdown after several failed attempts earlier this year. This resilience is a positive sign.
Trader Tardigrade believes this indicates DOGE has hit its lowest point and is ready to climb. If this is true, the current price correction might be over, and we could see DOGE heading upwards.
Resistance and the Road Ahead
While an upward trend is anticipated, there’s some resistance around the $0.17 mark. Breaking through this level would be a strong confirmation of a bullish trend, potentially leading to higher prices.
Trader Tardigrade also mentioned the Wyckoff Accumulation formation. They believe this pattern is developing, with a “perfect test” completed. This suggests Dogecoin will soon find its “Last Point of Support” (LPS) – basically, the absolute lowest point of this dip. After that, the prediction is for DOGE to move towards key resistance areas, showing a “Sign of Strength” (SOS). Then, there might be a small pullback before a consolidation phase, building up momentum for the next leg up.
Double the Divergence, Double the Hope?
Adding to the positive outlook, Dogecoin recently formed a second bullish RSI divergence. This means that even while the price was going down, the RSI (a momentum indicator) was showing increasing strength. The first divergence was a weaker signal, but this second one is much stronger, suggesting a real reversal is underway./p>
