In its previous bull run, Dogecoin’s [DOGE] The breakout opened the way above its nine-month trendline support (white, dotted). This revival has helped the meme-coin accelerate its growth above its 20/50/200 EMA on the daily chart.
The volatile breakout of the ascending triangle pattern has created a big hurdle in the $0.087 region. This reversal can now find bounce grounds near the $0.066-$0.065 range.
At press time, DOGE was trading at $0.069, down 14.96% in the past 24 hours.
DOGE Daily Chart
The buyback from the 15-month support in the $0.049-$0.052 range helped the coin maintain a sideways trajectory during this time frame. Meanwhile, buyers struggled to break the shackles of the $0.071 level.
While buying pressure has seemingly built up around this level, recent growth has confirmed the ascending triangle on the chart.
Considering the bullish recovery trends over the past month, the coin might find reliable grounds in the range of $0.065 to $0.066. Any break below this range could put the altcoin in a price discovery phase to reiterate the bearish edge.
However, a buying intervention in this range can help bulls avoid further losses. Buyers would aim to induce a rally towards the short-term EMAs in the $0.73 area.
The RSI eventually dipped below equilibrium to reveal a bearish edge. The bulls need to hold the 43-level support to keep the stimulus possibility alive.
Interestingly, the CMF and OBV lines marked higher lows over the past week. This trajectory confirmed the plausibility of a bullish divergence with the price action. But the alt was not yet showing a strong directional trend, as evidenced by the ADX.
DOGE’s drop below the short-term EMAs and the $0.07 mark have positioned the altcoin for a short-term slow phase. A potential rebound above this mark could portend an eventual recovery. The objectives would remain the same as those discussed.
Finally, the dog-themed coin shares a 70% 30-day correlation with the king coin. So, keeping an eye on Bitcoin’s movement would complement these technical factors.