DOGE Price Requires Rebound to Escape Bearish Capitulation
The Dogecoin (DOGE) price has recently seen a bounce in the lower time frames, but its long-term outlook suggests weakness. The price is currently holding above a crucial horizontal support level, but a decisive bounce is needed to avoid a significant fall.
On the weekly time frame, the DOGE price dropped in early June and reached the $0.06 horizontal support area, which has been in place for 378 days. Whether the price bounces above this level or breaks down will be key in determining the future trend. Additionally, a descending resistance line has been in place since February 2022.
Although there has been a bounce in the DOGE price, the Relative Strength Index (RSI), a momentum indicator, is providing a bearish reading. The RSI has fallen below the 50 line and is decreasing, indicating a bearish trend.
On the daily time frame, the price action is not decisively bearish. The DOGE price broke out from a descending resistance line and reclaimed the $0.065 horizontal support area. It is currently in the process of validating this area as support. Whether it bounces or breaks down from this level will be crucial in determining the future trend.
If DOGE bounces, it could reach the 0.5 Fibonacci retracement resistance level at $0.08 and the long-term resistance line. However, if the price breaks down, it is expected to fall from the long-term $0.060 horizontal area, with a potential drop to $0.050.
The future price prediction for DOGE will depend on whether it bounces or breaks down from the minor $0.065 horizontal support area. A bounce could increase the resistance at $0.080, while a breakdown could lead to a significant fall.
It is important to note that this analysis is for informational purposes only and should not be considered financial or investment advice. Conducting your own research and consulting with a professional is always recommended before making any financial decisions.
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