- Dogecoin price retreats from a month-long resistance to snap a five-day winning streak, challenging the first weekly gain in five.
- Clear recovery from lower Bollinger Band and multi-month horizontal support, along with upbeat stochastic, attracts DOGE buyers.
- Multiple hurdles below $0.2100 raised the bar for Dogecoin buyers.
- Dogecoin recovery hopes to prevail as long as the price stays beyond the eight-month horizontal support.
Dogecoin (DOGE) price faces the first daily loss in six while reversing from a multi-week resistance to $0.1525 early Thursday morning in New York.
In doing so, the memecoin fades the previous weekly rebound from a horizontal support area ranging from March, despite upbeat prints of the stochastic momentum indicator.
Still, softer trading volume and a pullback in the market capitalization (market cap) raise doubts about DOGE’s fresh pullback, especially amid the broad crypto market optimism.
According to Santiment, Dogecoin’s daily trading volume declines for the third consecutive day to $1.43 billion, while the market cap faces a pullback from the weekly top to $23.27 billion by press time.
With this, Dogecoin faces its first weekly gain in five, but stays on the way to posting a second consecutive monthly loss and looks set for a yearly fall.
Is DOGE capable of reversing its monthly loss? Read below!
Dogecoin Price: Daily Chart Attracts Buyers
Dogecoin’s sustained reversal from the lower BB and an eight-month-old horizontal support area, between $0.1350-$0.1430, gains support from the bullish stochastic line, beyond the neutral 50.00 threshold, but beneath the 80.00 overbought mark, to lure the buyers.
With this, the DOGE bulls may cross the immediate resistance line from October 27, close to $0.1570, and approach the middle BB hurdle of $0.1590.
That said, a daily closing beyond the same could propel prices to the upper BB of $0.1825 and then to a 10-week resistance line near $0.1910.
However, the memecoin’s upside past $0.1910 will be difficult as the 200-day and 100-day EMAs, respectively near $0.2070 and $0.2100, could challenge the buyers before giving them control, allowing them to target October’s peak of $0.2705.
Meanwhile, the DOGE pullback remains elusive beyond the $0.1350-$0.1430 broad support area. Adding strength to the $0.1350 support is the lower Bollinger Band.
If the Dogecoin price slips beneath $0.1350 on a daily closing basis, it becomes vulnerable to slump toward October’s yearly low of $0.0964, with the $0.1200, $0.1100, and the $0.1000 thresholds likely acting as intermediate halts.
Dogecoin Price: Four-Hour Chart Highlights Weekly Support Line
On the four-hour chart, Dogecoin portrays a week-long ascending trendline, currently near $0.1500, as an immediate key level that challenges the bears.
Adding strength to the recovery hope is the stochastic line’s recent U-turn from the overbought limit of 80.00.
Notably, the monthly low of $0.1330 acts as an extra downside filter to watch for the DOGE sellers, apart from the daily chart’s deeper levels.
Alternatively, the 100-bar SMA adds strength to the $0.1570 resistance, and the 200-bar SMA of $0.1697 offers additional challenge to the Dogecoin buyers before directing them to higher levels discussed on the daily chart.
Conclusion
Dogecoin’s latest retreat from a month-long resistance line lacks support from the stochastic momentum indicator, as well as contradicts the memecoin’s previous rebound from a multi-month support. This, along with the crypto market optimism, could term the latest pullback in the prices as a month-end consolidation while raising hopes of an upbeat December. However, the DOGE’s yearly loss is less likely to be reversed in the coming month unless the fundamentals turn extremely positive.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP Tumble on Fed Buzz; More Pain Ahead?
