Dogecoin, the popular meme cryptocurrency, is experiencing significant downward pressure, causing concerns among investors. Dogecoin has seen a steady decline in its price. A recent X post by CrediBULL Crypto highlights crucial support and resistance levels that could dictate Dogecoin’s future price movements.
According to analysis, Dogecoin is approaching a critical support zone at approximately $0.08799. If this support holds, it could provide a base for a potential recovery. The chart suggests that a rebound from this level could lead to a significant upward movement in the longer term. However, if Dogecoin fails to maintain this support, it might drop to the next critical level below $0.05.
DOGE/USD chart indicates a downtrend that started in mid-April 2024, with the price attempting a minor recovery recently. At press time, DOGE was trading at $0.125 with a Relative Strength Index (RSI) at 32.82, signaling that Dogecoin is in the oversold territory. This technical indicator suggests that a short-term bounce might be on the horizon.
CrediBULL’s post highlights two main scenarios for Dogecoin’s price movement. The primary scenario suggests that Dogecoin could find support around $0.08. If this level is maintained, it might stabilize and potentially start recovering. Conversely, losing this support could lead to a further decline, pushing the price below $0.05. This bearish outlook is a significant consideration for traders and investors alike.
Dogecoin Faces Bearish Sentiments: Will It Bounce Back from $0.12?The analyst also mentions an alternative scenario where Dogecoin could rally to $0.18-$0.20 before dropping to $0.08. Such a rally would present a shorting opportunity, although the analyst expresses skepticism about this scenario occurring before a decline to $0.08.
While the RSI indicates a possible short-term recovery, the overall sentiment remains wary unless strong support is confirmed. This cautious optimism reflects the prevailing sentiment among many analysts and traders in the cryptocurrency market.
