Dogecoin Shows Potential for Price Recovery Toward $1
Dogecoin (DOGE) is undergoing a correction amid the broader crypto market decline. However, technical indicators suggest a potential reversal.
Doji Formation and Potential Recovery
- A doji candle pattern on Dogecoin's weekly chart indicates market indecision, historically preceding trend reversals.
- If this pattern holds, DOGE could recover towards $1.
- The current market structure resembles previous consolidation phases before significant breakouts, contingent on maintaining support at $0.16.
Currently, DOGE is trading at $0.1688, down 2.67% in the last 24 hours. Trading volume has decreased by 2%, while Open Interest increased by 1.60% within four hours.
Strong Holder Accumulation
- Despite a 37% price drop over the past month, on-chain data shows increasing accumulation by large holders, with wallets holding at least 1 million DOGE rising.
- Active addresses have reached a four-month high, signaling renewed investor interest.
- This accumulation could provide support for a price rebound, especially with potential approval of spot Dogecoin ETFs.
Price Analysis
- The 20-day Exponential Moving Average (EMA) is at $0.1875; DOGE currently trades slightly below this level.
- A bullish move above the 20-day EMA may indicate further upward momentum.
- The Relative Strength Index (RSI) stands at 37.23, approaching oversold territory, often followed by recoveries.
- Key resistance levels are $0.1875 (20-day EMA), $0.2421 (0.786 Fib level), and $0.40+ (breakout region).
- If DOGE surpasses $0.1875 and $0.24, a breakout toward $0.40 may occur; failure to maintain $0.16 could lead to lower support around $0.14.