Dogecoin (DOGE) hovered between $0.3261 and $0.1456 for over nine months until the bears flipped the $0.1456 mark from support to resistance on Jan. 22. This bearish phase continued its trajectory into a down channel (white).
With the price approaching its long-term support and forming a bearish wedge (reversal pattern), DOGE could see a recovery towards the $0.12 zone after testing its Point of Control (POC, red) at the $0.11 level . At the time of writing, DOGE was trading at $0.1122.
DOGE Daily Chart
Since its October high, the alt is down more than 69% when it fell to a 10-month low on Feb. 24. During this phase, the 50 EMA (cyan) has been a strong selling point, eschewing most bullish recovery attempts.
The demise caused the dog-themed meme coin to lose the crucial $0.1213 mark that the bulls had been defending for more than a decade. The latest bearish saw a falling wedge after the alt bounced back from its then-supply zone at $0.135. In addition, the price declined below the seven-week POC towards the $0.11 11-month support.
As of now, while the gap between the 20 EMA (red) and the 50 EMA has widened a little, DOGE would most likely be looking for a rebound from its immediate support. Should the bulls shrink, any drop below the $0.11 mark could trigger a major fallout before buyers step in to trigger a recovery to the $0.12 mark.
Over the past three weeks, the RSI has kept its base of 34 points intact. It also saw a slight upward trend over the past two days, reaffirming buyers’ intentions to keep support solid. Now recovery from this level could be likely in the coming days.
Moreover, the CMF saw a bullish divergence with the price as it witnessed an uptrend in its lows. This reading brought with it increasing cash flows into crypto and kept hopes of a near-term rebound alive. Nevertheless, the distance between the DMI lines showed strong bearish strength. But the ADX still failed to reveal a strong directional trend for the alt.
DOGE saw a bullish divergence with the CMF and a reversal pattern on the daily chart. Furthermore, with the situation overloaded on its 20/50 EMAs, a bullish rebound in the coming days seemed likely.
However, the meme coin shares a 62% 30-day correlation with the king coin. So it is vital to keep an eye on Bitcoin’s movement to complement these technical factors.