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Dogecoin Price: Amid the weekend sell-off in the crypto market, the popular memecoin DOGE witnessed a 21% correction with its price falling from $0.192 to $0.15. However, the correction lies within the safety net of the Fibonacci retracement tool and develops a bullish continuation pattern to indicate the asset is poised for further growth.
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Will $0.15 Support Hold Amid Market Correction?
Dogecoin (DOGE), the largest memecoin by market cap, has witnessed a surge in volatility recently evidenced by the long-wick rejection candle in the daily chart. However, the consolidation resonating within two converging trend lines indicates the formation of a bullish continuation pattern called Pennant.
The nature of this pattern suggests the DOGE price exhausted from the recent rally which surged its price from $0.084 to $0.206 and needed a minor pullback to regain its strength.
With a 6.9% intraday loss, the Dogecoin price teases a breakdown below the pattern’s lower trendline. If the market-wide correction bolstered sellers to break this support, the supply pressure will accelerate and invalidate the bullish thesis.
The post-breakdown fall may have plunged the memecoin value to $0.124 support.
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Dogecoin Price Hints Breakout Strategy for the Next Fortnight
If the patterns hold true, the coin price may rebound from the lower trendline to continue the current consolidation. For this Dogecoin price to return to the recovery trend, the Buyer must break the pattern’s upper trendline. The pattern developed on a 4-hour chart hints at another 1-2 weeks of consolidation before a decisive breakout.
The potential breakout may surpass $0.2 and hit a theoretical target of $0.26.
Technical Indicator
- Exponential Moving Average: A fasting moving 20-day EMA offers immediate support for buyers to prevent further correction.
- Relative Strength Index: The daily RSI slope downtick at 54% reflects a waning bullish momentum in the market.
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Read More: Here’s When Dogecoin Price May Return On Recovery Trend to Surpass $0.2
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