The past few weeks have been challenging for the popular meme cryptocurrency as price fluctuations in the market stall its progress. However, Dogecoin has pushed itself close to the nine-month trendline resistance zone. The steady but gradual turnaround helped the DOGE drive its value in an attempt to start a bullish rally.
Moreover, the meme coin has struggled to find a breakout from the point of control (POC) on the trading floor. The price chart shows the POC in red. There are multiple resistance levels in the $0.07 price range.
This means buyers must increase their purchasing volumes to trigger a price breakout. At the time of writing, Dogecoin is trading at $0.0689, with a slight rise of 2.85% over the past 24 hours.
The king of meme coins is poised to bounce back from its numerous setbacks. Traders are counting on the recent price shift that might see the meme coin reverse its fortunes. The question is how far Dogecoin can move before regaining its previous value.
(DOGE/USD daily chart. Source: TradingView)
Dogecoin Price Action
The surge in the buying spree shows that the support for the 15-month price range of $0.049-$0.052 helped the token stabilize a bit. As a result, DOGE could get a place close to the POC zone. However, buyers could not break even above the EMA ribbon’s stranglehold.
Similarly, the nine-month trendline barrier coincides with the 50 EMA to put up strong resistance. The buying pressures have already been built and surround the boundary of the ribbons. However, a break above the $0.07 price level will trigger a bullish trend.
Over the last month, the Dogecoin price pattern has had a triangle-like shape. The previous slight price spike indicates that the token has the potential for a further price breakout.
Likewise, a break above the piece pattern might trigger a retest of the $0.077 price mark in the coming trading sessions.
Meanwhile, a bearish period at the $0.07 level will enable sellers to prolong the phase. And a close below $0.065 could make the bullish outcome invalid.
The relative strength index (RSI) will snap at the 52 hurdles to create a bullish possibility. Still, the bulls will need to put in extra efforts to maintain the trend at this level to ensure continuous growth.
Interestingly, the bullish direction aligns with the price action that could determine a future uptrend. However, Dogecoin is yet to display a strong price direction trend to spark a revival.
In addition, the candlesticks show the bullish bias of the meme token even though it is yet to hit the target expected. Ultimately, other market variables will determine the outcome of DOGE’s price performance in a bearish or bullish direction.
In conclusion, Dogecoin shares a price correlation with Bitcoin of 79% in 30-day price action. Thus, keeping tabs on Bitcoin’s price movement might further complement the technical indicators.
Currently, Dogecoin still has some distance to cover to reverse the downtrend.