Dogecoin (DOGE): Assessing Rebound Chances from This Defending Zone
October 2, 2022- DOGE strived to overcome its 50-dayMA resistance, but can it secure renewed buying momentum?
- The canine-themed token noted declines in 24hr active users & development activity.
Dogecoin has witnessed consistent dips since reversing from $0.3 in September 2021. That came as the overall crypto market endured a meltdown. The downside period saw DOGE matching its annual lows in June & September 2022. The buyers seemingly secured dependable grounds at $0.057 – $0.059 within the past few days.
The previous bullish run saw the meme token’s breakout catalyze a retest of its 6-month trend line resistance. The latest bearish drag sent the alternative coin beneath its 50-Exponential Moving Average barrier. A decisive $0.059 retest can form the base for buying revival. While publishing this blog, DOGE traded at $0.0615.
DOGE in Low Volatility Period
While the bearish momentum appeared to renew around the 50 Exponential Moving Average, the emerged reversal has had bulls under control. Meanwhile, $0.067 represents a high liquidity region that bulls would want to retest amidst the upcoming sessions.
Nevertheless, the 50EMA bearish hammer made the short-term bearish inclinations somewhat apparent. Considering DOGE’s latest tendencies to recuperate from the longer-term trend line foothold, buyers might plan to trigger a rally.
A move past the 50 Exponential Moving Average might support buyers to hit $0.065 – $0.058 before a potential rebound. Continued pulls beneath $0.058 would welcome more losses for the original meme coin. Sellers can push the alternative token toward the eleven-month trend line support at $0.052 – $0.055.
Nevertheless, DOGE buyers should watch for Relative Strength Index closing beyond the midline to identify bull run chances. Continued sways around the midline would confirm consolidation tendencies. Surprisingly, the balance’s lower highs printed a bullish divergence with Dogecoin’s price.
Fading Development Activity and Daily Active Users
Dogecoin has battled to ensure demand within the previous two months as daily active users and development activity suffered plummets. That saw the price action exhibiting fragility as it entered the low volatility period.
Final Thought
Indeed, Dogecoin remains at a crucial juncture. The token’s technical readings show reduced volumes plus fragile movements. Meanwhile, a closing beyond 50EM might initiate short-term bullishness. Either way, the selling targets, and triggers would stay as highlighted above.
Lastly, DOGE shares a notable 57% monthly correlation with Bitcoin. Dogecoin fans should watch BTC’s actions as they contemplate the discussed technical factors.
