Will Dogecoin Bounce Back To $0.07? Here’s What To Watch For

Christian Encila

1 year ago

3 mins read

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Dogecoin (DOGE) has been ensnared in a prolonged period of stagnation, hinting at the ongoing battle between the bulls and bears for market control. This extended phase of inactivity has been persistent for over a month, signifying a short-term consolidation stage. Against the backdrop of a tumultuous cryptocurrency market, DOGE enthusiasts and investors are eagerly seeking cues for the coin’s next move.

A meticulous examination of the daily chart in a price analysis unravels two distinctive patterns that have been shaping DOGE’s price trajectory. There is a range formation with defined limits at $0.068 and $0.056, anchoring the coin’s recent price movements. In addition, an ominous descending resistance trendline looms large, presenting an additional hurdle for DOGE’s potential ascent.

Bearish Dogecoin Impediments And Crucial Thresholds

In light of the recent downturn in the broader crypto market, DOGE is currently grappling with formidable supply pressure around the $0.063 mark. The persistence of the descending trendline is emboldening sellers, increasing the likelihood of a retest of the enduring support at $0.059. Should this crucial level be breached, validated by a daily candle close, it could potentially intensify bearish sentiments, setting the stage for a 5.5% downturn toward the $0.056 level.

However, amidst this challenging terrain, the $0.059 support level converges with an ascending trendline, generating a region of heightened significance. Should the buyers seize this juncture of market indecision, a successful breakthrough above the descending trendline could breathe fresh life into bullish sentiment. A confirmed breakout has the potential to usher in a rally, potentially propelling DOGE by an estimated 10%.

DOGE market cap currently at $8.5 billion. Chart: TradingView.com

Market Snapshot And Insights From Analysts

Presently, the global crypto market capitalization stands at $1.06 trillion, witnessing a marginal 0.41% decrease over the last day. DOGE is currently trading at approximately $0.060725 according to CoinGecko, with a 24-hour decline of 1.3% and a seven-day loss of 1.6%.

Total market capitalization for #Crypto fights the resistance here of the 200-Week EMA.

I think it’s just a matter of time until we flip above it. Probably 1-2 weeks if Ethereum ETF Futures could be approved and Uptober begins. pic.twitter.com/UyKNjgUgf1

— Michaël van de Poppe (@CryptoMichNL) September 21, 2023

Meanwhile, crypto analyst Michael Van de Poppe posits that the overall crypto market capitalization is currently testing the resistance level of the 200-week EMA. He asserts, “I believe it’s only a matter of time before we breach it, possibly within 1-2 weeks if Ethereum ETF Futures gain approval and Uptober commences.”

Dogecoin is currently at a critical juncture, navigating a consolidation phase in a market filled with uncertainty. Traders and investors are closely observing the developments, eagerly awaiting cues that will shape DOGE’s path forward. Both bullish and bearish possibilities are on the horizon, making the upcoming weeks pivotal for DOGE and the broader cryptosphere.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.