Wait for bullish confirmation as Dogecoin (DOGE/USD) retests $0.09 support
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Dogecoin lost 4.58% in a market correction on Wednesday
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The cryptocurrency still has a bullish bias
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DOGE is a buy on bullish signals in the $0.09 support zone
An intraday loss of 4.58% may not be good news for investors Dogecoin (DOGE/USD). However, it sounds good to investors looking for a piece of the meme cryptocurrency. That’s because DOGE’s slide brings it back to a major breakout level that has now become support. The level is a buy zone as long as DOGE confirms a bullish reversal. It could happen in the next few days.
DOGE trading coincides with endless speculation that Twitter will use cryptocurrency as a payment method. Even as most cryptocurrencies continue to struggle, DOGE is giving investors hope that a recovery is on the way. Since the FTX-inspired rally, DOGE has been on a slow but steady recovery. Buyers are also noticing.
DOGE holder distribution indicators show that nearly 70% of buyers of the cryptocurrency hold it for more than a year. These are holders who are confident in a return to previous all-time highs, as opposed to short-term traders who get out at the next level of profit. But aside from this important fundamental, DOGE is currently attractive to short-term buyers, as the technical indicators below show.
DOGE is retesting $0.09 for a possible bullish move
DOGE/USD chart by TradingView
The daily chart outlook shows DOGE retesting support at $0.09. That’s because the price was rejected at the 50% Fibonacci retracement level, which coincided with a price of $0.10. The slowdown has resulted in the RSI falling, although the reading remains above the midpoint.
Potential price action near the $0.09 support could herald a benefit. The support also coincides with the 20-day and 50-day moving averages, bringing a confluence of price action for DOGE.
What should you watch now for DOGE?
Bullish reversal signals at the $0.09 support will be validated Buy Dogecoin. The reversal will set DOGE at $0.12, the 61.8% Fibonacci retracement zone.
Where to buy DOGE
eToro
eToro offers a wide variety of cryptos, such as Bitcoin, XRP and others, in addition to crypto/fiat and crypto/crypto pairs. eToro users can connect, learn from and copy or be copied by other users.
Buy DOGE with eToro today
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