With the broader crypto market turning bullish again, Dogecoin, the most important dog-themed meme coin has shifted toward positive territory because it recovers above the $0.17 level. Many crypto experts proceed to predict an impending price rebound, which suggests that DOGE’s renewed upward movement may very well be part of a bigger uptrend.
A Price Rebound Imminent For Dogecoin?
Dogecoin is seeing renewed positive momentum, recording an over 5% gain within the last 2 days. As the value begins to point out upward movements, Ali Martinez, a market expert and trader has forecasted an impending rally for DOGE, suggesting the continuation of the continuing uptrend.
While Ali Martinez predicts a rally for the meme coin, it must maintain support at a critical price level. DOGE’s recent price motion shows a possible trend reversal, setting the stage for a notable upsurge as bullish momentum builds up.
Martinez’s forecast is predicated on an enormous Ascending Parallel Channel formation that’s spotted on the weekly time-frame. the chart, this rising pattern hinting at a bounce-back scenario has been forming for the past 10 years.
Presently, the ascending parallel channel pattern has created a powerful support zone on the $0.16 mark. As seen prior to now, each time the pattern forms a powerful support, DOGE normally undergoes a big rally toward a latest all-time high.
Considering past trends, Martinez forecasts a rebound toward the mid or upper range if Dogecoin maintains its positive above the $0.16 support on the channel’s lower boundary. A surge to the mid or upper range of the channel will bring the meme coin’s price between $4.5 and $14 at the tip of the present bull market cycle.
Downside Movement For DOGE More Likely Than An Upside Push
Regardless that DOGE has often skyrocketed once the channels find strong support, it is feasible that its failure to keep up above the support zone might expose it to further downside risks within the short term.
Trader Tardigrade, a crypto analyst and investor has outlined a possible downside move within the upcoming days after examining DOGE’s price motion on the every day chart. In line with the expert, the Dogecoin every day chart displays a bearish Tweezer candlestick pattern, with a false breakout on the resistance level of $0.176.
This technical setup shows that Dogecoin is more prone to move downward to retest the previous support level of $0.143, thereby making a sideways range between $0.143 and $0.176. Meanwhile, DOGE’s stabilization inside the sideways range may set the stage for an upward breakout to key resistance levels. Nevertheless, DOGE must gain momentum with higher lows barely below $0.176 so as to break past the extent.
On the time of writing, the meme coin has risen to the $0.175 mark, displaying a greater than 2% increase within the last 24 hours. Data from CoinMarketCap reveals that investors’ sentiment has turned significantly bullish, with its trading volume increasing by over 56% prior to now day.
Featured image from Pexels, chart from Tradingview.com
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