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