The broader cryptocurrency market has seen significant corrections over the past six months, driven primarily by the two largest digital currencies: Bitcoin (BTC) and Ethereum (ETH). Dogecoin (DOGE), a leading meme coin, has not escaped this trend, experiencing a notable decline in value.
Dogecoin price falls 55% from March peak
Since hitting a yearly high of $0.22 in March, DOGE has seen a significant 55.9% decline, currently trading at around $0.0976. This decline is even more pronounced on longer time frames; according to CoinGecko dataDogecoin is now down 86% from its all-time high of $0.73 in May 2021.
In the compact term, Dogecoin has performed poorly compared to the overall cryptocurrency market, which has seen a 6.90% drop over the past week. During the same period, DOGE’s price has fallen 8.8%, further illustrating its struggles.
However, there are bullish signals that could pave the way for a recovery. Cryptocurrency analyst Ali Martinez recently he pointed out A bullish divergence is forming on Dogecoin’s 4-hour Relative Strength Index (RSI).
The analyst further noted that the Tom Demark Sequential 9 (TD) indicator is sending a buy signal, which suggests that a price rebound may be on the horizon.
Can DOGE break through $0.10?
As noted by the analyst, these indicators suggest that Dogecoin price could potentially surge above current trading levels, with the $0.10 level being a milestone not seen since August 24.
Reaching this level would mark a successful reclaim of the token’s 50-day exponential moving average (EMA), which coincides with the $0.10 price level. However, if the bullish momentum fails to materialize, there is a risk of a failed attempt to reclaim this key resistance.
If DOGE successfully breaks through the $0.10 threshold, bulls will need to focus on the next significant hurdle at $0.107. This level is crucial for any further attempts to climb higher and break the next EMA.
If Dogecoin manages to break through this resistance, it could be poised to retest the 200-day moving average at $0.11. A successful breakout of this level could signal a continuation of the rally, potentially pushing DOGE towards the next resistance level at $0.13 on the DOGE/USDT daily chart.
On the other hand, Dogecoin’s price has found significant support at $0.094 for the past nearly four weeks, which prevented the token from falling back towards $0.080 last week, which happened during the broader market crash on August 5.
What is certain is that despite these signals, an upside momentum is badly needed for the coin to break higher resistance and consolidate above previous support levels, thus continuing its path to retesting the yearly highs.
Featured image from DALL-E, chart from TradingView.com
