The price action for Dogecoin on April 24 shows a daily candlestick about to close below the $0.133 support zone, indicating that prospective traders may drive the coin to reach the bottom support zone at $0.111.
However, in a twist of events, the daily chart for the meme cryptocurrency shows a complete reversal of the previous forecast as the price of the DOGE shot up by 5%, which puts it way above the $0.133 support.
Critical Price Point
The price of Dogecoin exhibits a weekly candlestick, which closes the daily trading below the $0.133 support level. Additionally, the DOGE/USDT combination has maintained its volatility for almost three weeks, swinging within a short price range between $0.154 to $0.133.
Admittedly, the technical formations of the price action show the meme token has reacted to the predicted fallen wedge and is on the verge of reaching its peak.
Further price action has seen the price of the meme coin break through the $0.133 support that was earlier set at the beginning of the trading session, which points to the possibility of the sellers extending the current correction period for some time.
However, further positive action has seen the meme coin witness a considerable inflow, which triggered another further price surge of 5%.
Meanwhile, the 5% increase is seen as the aftermath of the news that Elon Musk will enter into another negotiation round with the Twitter team for a possible takeover. Additionally, experts believe that an improved offer by the billionaire would be necessary for further negotiation.
DOGE/USDT 1-day trading. Source: TradingView
Further breakdown of the price action indicates that there would be a 337% increase in volume for coin holders, which means that a bullish is imminent from the resistant level, which has been the most influential factor for the price uptrend.
Should the buyers succeed and make headway, the price of the canine token would rise by 23.8%, which would push the resistance level to a further $20.173.
Moreover, the bullish theory can be invalidated when the sellers cannot drive the Dogecoin price below the trend zone, which may trigger another downward trend to $0.111.
Technical Review
The sellers can stage a strong defense if the 20 to 50-day moving average tallies with the resistance trend line. However, if the coin price is trading below the critical EMA, the price performance results indicate a bearish period.
Compared to the previous price action, new heights can be formed by the OBV metrics where higher news can be formed, thereby boosting the 23.8% growth forecast.
Analysts believe that the Dogecoin price move depends on the trend line’s direction, pointing to either an uptrend or downtrend movement. In this case, the price outcome is dependent on the variables influencing the market activities.
As the price fluctuates further, more input from the traders will be needed to keep the bears away and bolster the performance of the bulls for enhanced price performance.
