Since Dogecoin (DOGE) fell off the October highs, it has continued to test the $0.162 mark several times and switch to resistance. Since then, it has marked lower lows until it moved towards the $0.11 floor.
From here, a closing close above the trendline support (white, dotted) would position DOGE for a retest near its EMA ribbons before a likely pullback from the $0.12 zone. At the time of writing, DOGE was trading at $0.1165, down 5.53% in the past 24 hours.
DOGE 4 Hour Chart
Source: TradingView, DOGE/USD
Since rolling back the $0.33 mark, the meme coin is down more than 68% and plunged to its 10-month low on Feb. 24. Except for a few occasions, the EMA ribbons have not done a bullish flip in the past four months.
The downslide caused the alt to lose the crucial $0.1360, a value the bulls held for more than ten months. The latest bearish engulfing candlesticks created a strong supply zone between $0.123 and $0.119. In addition, the Point of Control (red) and the 50 EMA should continue to provide a strong recovery barrier for bulls.
Going forward, the current trendline support is critical for the buyers to defend to avoid fallout. Taking into account improving general sentiment, a close above this support would trigger a POC retest before falling back into its long-term downward trend.
rode
Source: TradingView, DOGE/USD
As the bearish RSI broke out of its midline support, it appeared to level off near the 33-36 range support. Any recovery from this zone could provide opportunities for a test of its immediate resistance.
In addition, CMF swung above the midline predicting a bullish divergence with the price. This reading brought up a bullish rebound opportunity. But with MACD lines undergoing a bearish crossover, the bulls will have a hard time defending the $0.115 support. In this case, a further decline towards $0.111 before a reversal is possible is conceivable.
Conclusion
With a bullish divergence on the CMF, a near-term comeback to its 50 EMA would be likely. But for that, the bulls need to provide trendline support and propel a recovery to higher volumes. However, the meme coin shares a 77% 30-day correlation with the king coin. So it is vital to keep an eye on Bitcoin’s movement to complement these technical factors.
This post Sentiment or not, should you bet on Dogecoin rally soon?
was published first on https://ambcrypto.com/with-improving-overall-sentiment-can-doge-see-a-rally-in-the-days-ahead/
