Despite the sudden crash in Dogecoin, support at lower levels and historical price movements suggest significant upside potential for DOGE holders.
As crypto market valuations drop to $3 trillion, the meme coin segment has seen a massive decline of 17.29%. The meme token market capitalization is now down to $69.36 billion, with Dogecoin (DOGE) experiencing a 16.75% drop.
Dogecoin maintains a market cap of $37 billion, recently hitting price levels of $0.20. Currently, DOGE is trading at $0.2516, with a 24-hour trading volume of $10.712 billion.
Amid growing uncertainty, can the volatile nature of meme coins lead to an extended crash for DOGE?
Strong Support at $0.20 Hints Bullish Reversal in Dogecoin
According to the daily chart, DOGE’s price action reveals three consecutive bearish candles. The most significant one remains the 12.94% drop yesterday to create a bearish engulfing candle.
Currently, the intraday candle reveals a significant low price rejection after creating a 24-hour low at $0.20 psychological mark. The intraday pullback currently remains at 5.75%, as DOGE trades below the 200-day EMA line.
However, with the lower price rejection, Dogecoin has sustained a dominance above the 50% Fibonacci level at $0.24799. The sudden increase in bearish pressure in the short term is teasing a potential bearish crossover among the moving averages.
However, the stochastic indicator hints at a bullish comeback as the lower price rejection reveals strong support at lower levels. The stochastic lines give a positive crossover in the oversold region and project a potential comeback as the bearish exhaustion kicks in.
The Fibonacci levels suggest immediate price targets at $0.288 and $0.3565. On the downside, support remains strong at the $0.20 psychological zone.
Dogecoin Historical Data Show Promising Outlook
While the short-term outlook is highly volatile and bearish, the long-term perspective on Dogecoin remains relatively optimistic.
In a recent post on X, trader Tardigrade highlighted the historical pullbacks in Dogecoin. The analyst suggested that this recent pullback could be part of the process DOGE must undergo before experiencing a parabolic rise.
In 2016, Dogecoin experienced a 59.76% pullback, followed by a massive bullish rally of 9,221%. Similarly, the 2020 pullback saw DOGE fall by nearly 56.2%, followed by a bullish surge of 30,693%.
With the ongoing bearish performance, Tardigrade urged, “When in doubt, check the macro chart.”
Essentially, Trader Tardigrade remains optimistic about Dogecoin’s future and projects a bullish comeback, with potential price targets surpassing the $2 psychological milestone.
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