Meme cryptocurrency Dogecoin has had quite a few days of intriguing price action coupled with intense volatility. Notably, Dogecoin, which ended the final days of September on a bullish run, has since reversed these gains and is back where it left off, just above $0.10.
According to a technical analysis of the price action of Dogecoin, the meme coin broke above a multi-month downtrend last week. However, as it stands, DOGE has made a recent correction in the last 48 hours reverse to retest the breakout point. As one crypto analyst noted, this retest is crucial to DOGE’s performance in the coming weeks and months. A bounce or a break below can make or break the meme coin’s price.
Dogecoin retests the macro falling wedge
A crypto analyst known as Kevin on social media platform Kevin has built a reputation among his social media followers for his extensive analysis of the DOGE price action on the upper trend line of the multi-month price. falling wedge where it successfully broke out last week.
According to Kevin, this type of retesting is actually normal when these types of pimples occur. A retest and a subsequent step up often act as confirmation of the outbreak. However, with the current situation, this retest could be more than just a retest. This is because a break below the trendline would mean that the meme coin is still stuck in a multi-month downtrend and has not broken out as most investors had hoped. This in turn could culminate in a decline, eventually allowing DOGE to reach a low of $0.085 in the coming weeks, or even create a lower low below that level.
#Dogecoin is currently retesting the macro falling wedge where it broke out a week ago, which is technically a bullish backtest and should occur when these patterns materialize. If #DOGE If this area is lost, big problems await. We need to hold this zone for this six month pattern to… pic.twitter.com/kYTWuQTwNH
— Kevin (@Kev_Capital_TA) October 1, 2024
Consequently, the zone from $0.11 to $0.108 is a crucial zone for Dogecoin bulls to hold. In the words of crypto analyst Kevin, Dogecoin needs to “hold this zone so that this six-month pattern doesn’t fail.”
What’s next for DOGE?
At the time of writing, Dogecoin is trading at $0.1085 and is down 8.5% in the last 24 hours. If bulls can maintain price above this key zone in the coming days, it would strengthen and potentially strengthen the validity of the recent breakout paving the way for even more profits in the coming weeks.
Dogecoin’s price drop over the past 24 hours is not an isolated move and is part of a broader decline among many cryptocurrencies. The hype in the run-up to October (Uptober) has been relegated to a drop in the price of cryptocurrencies on the first day of the month.
Featured image created with Dall.E, chart from Tradingview.com