Dogecoin (DOGE), the dog-themed meme coin, has found solid resistance at the $0.1055 level, with bears eyeing a potential retest of the $0.0890 support level. As seen on the daily chart, this threshold is a key area of interest for traders as it has fueled the bullish momentum that has recently driven DOGE to current levels. The question remains, will the bears achieve their goal?
DOGE price movement
The DOGE token has been very volatile over the past month, with the price hitting a low of $0.08979 before breaking above the $0.095 support level. This sentiment is also reflected on the daily chart, showing what could be described as a tug-of-war between bulls and bears.
At the time of writing, Dogecoin is trading at $0.1015, up 1.52% from its previous day’s price and down 5.87% from the previous month. Following this decline, the meme coin’s market cap plummeted to $14,813,560,309, putting it in 8th place on the market cap rankings.
Moreover, the 24-hour volume also showed a similar picture, falling by more than 2.63% to reach a limit of $533,702,505. This suggests that investor sentiment towards DOGE could potentially change as the cryptocurrency faces more selling pressure.
Bears are targeting $0.0890 support.
According to the TradingView chart of DOGE, this meme coin is swinging in a range limited by the trend line, forming a symmetrical triangle. Typically, this pattern is formed when there is a series of lower highs and higher lows, and there is a misconception about a bullish trend due to the leveling of buyers and sellers in the market.
This pattern also signals a possible short-term breakout, either up or down. Assuming that the bearish sentiment continues in the short term, more sellers are likely to jump in as the price approaches the previous high of $0.0948, also the 23.6% Fibonacci 3 level.
The success of this event could indicate a solid bearish momentum, which could lead to a further decline to the $0.09 support level. However, if buyers remain stable above the 50% Fibonacci level at $0.1016, the value of Dogecoin could reverse and start an uptrend.
This scenario could lead to a breakout at the $0.1055 psychological barrier to test the $0.1096 resistance level. The Chaikin Money Flow Index further supports this sentiment. At 0.08, it indicates inflows into Dogecoin, which could potentially contribute to a bullish move in the short term.
Also Read: Spot Bitcoin ETFs See $117 Million in Flows Ahead of Fed’s Crucial Call