The broader cryptocurrency market has seen significant corrections over the past six months, driven primarily by the two largest digital currencies: Bitcoin (BTC) and Ethereum (ETH). Dogecoin (DOGE), the leading meme coindid not escape this trend, registering a sharp drop in value.
Dogecoin price faces 55% drop since March high
Since reaching a yearly high of $0.22 in March, DOGE has seen a substantial drop of 55.9%, currently trading at approximately $0.0976. This decline is even more pronounced on longer time frames; according to CoinGecko dataDogecoin is now down 86% from its all-time high of $0.73 recorded in May 2021.
In the short term, Dogecoin has underperformed compared to the overall performance crypto marketwhich saw a 6.90% drop last week. During the same period, the price of DOGE fell by 8.8%, further illustrating its struggles.
However, there are emerging bullish signs that could pave the way for a recovery. Crypto analyst Ali Martinez recently pointed a bullish divergence forming on Dogecoin’s 4-hour Relative Strength Index (RSI).
Additionally, the analyst noted that the Tom Demark Sequential 9 (TD) indicator is flashing a buy signal, suggesting that a price recovery could be on the horizon.
Can DOGE break above $0.10?
As outlined by the analyst, these indicators suggest that the price of Dogecoin could potentially rise above its current trading levels, with the $0.10 mark being a critical milestone not seen since August 24.
Reaching this level would signify a successful recovery of the token’s 50-day high. exponential moving average (EMA), which coincides with the price of $0.10. However, if the upward momentum does not materialize, there is a risk of a failed attempt to regain this key resistance.
Should DOGE successfully break above the $0.10 threshold, bulls will then need to focus on the next significant hurdle at $0.107. This level is crucial for any further attempts to move higher and tackle the next EMA.
If Dogecoin can navigate this resistance, it could be poised to retest the 200-day moving average at $0.11. A successful breakout of this level could signal a continuation of the recovery, potentially pushing DOGE towards the next resistance level of $0.13 on its DOGE/USDT daily chart.
On the other hand, over the past nearly four weeks, Dogecoin’s price has found a significant support floor at $0.094, which has prevented the token from falling back to $0.080 last week, as it did during the broader market crash on August 5.
What is certain is that despite these signs, bullish momentum is much needed for the coin to push higher resistance and consolidate above its previous support levels to continue on its path to retesting yearly highs.
Featured image of DALL-E, chart from TradingView.com