Analytics
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The price of Dogecoin reversed the gain seen from September 21st to 24th and followed in the footsteps of the Bitcoin price. The downtrend provided buyers with a chance to accumulate tokens ahead of the inevitable return of bullish momentum.
Over the period September 21-24, the price of Dogecoin rose by 22%, which allowed for a swing high of $0.0683. However, momentum waned and market conditions deteriorated, wiping out all gains and pushing DOGE back into the $0.0587-0.0650 range.
For scalpers, the recent sell-off is a good opportunity to buy into support and take profits at the resistance level. This tactic can bring 12% profit. In addition, if the price of bitcoin continues to decline, the current level will be a good entry point for a long-term position.
Dogecoin price has a chance to break the multi-year downtrend line and reach highs at $0.0890. This jump would mean a 51% gain, at which point the upside potential for DOGE could probably be limited.
Dogecoin’s failure to hold the $0.0587 support level will indicate buyer weakness and force sellers to come to the fore. If DOGE closes the daily candle below the $0.0491 to $0.0587 demand zone, this will reverse the bullish trend and deepen the decline to $0.0471.
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