Dogecoin Price Skirts Potential Demand Zone, What Happens If It Hits Right?
After rallying above $0.3 at the start of September, the Dogecoin price has faced significant resistance since then, leading to an over 28% decrease in price. By Sunday, though, the Dogecoin price had begun to rebound, s...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
After rallying above $0.3 at the start of September, the Dogecoin price has faced significant resistance since then, leading to an over 28% decrease in price. By Sunday, though, the Dogecoin price had begun to rebound, suggesting that there would be a rise in momentum, especially among buyers. This now puts the meme coin at a significant level, as there is the potential of the price bouncing off the current demand zone, but with bears still making a bid, the tug-of-war continues.
What A Bounce From The Demand Zone MeansPresently, the most critical support for the Dogecoin price lies at the $0.229 level, as outlined by crypto analyst Lingrid, which the cryptocurrency has managed to hold over the weekend. This support level serves as confirmation that the Dogecoin price could continue its uptrend much farther than it did back in early September.
The analyst also outlines a bullish formation on the chart, which is a completed triangle breakout pattern. The completion of the bullish pattern is what had led to the initial bullish impulse before the price began to correct downward again.
Following the correction, the Dogecoin price was observed to be testing the lower boundary of the triangle trading range. However, with the price still holding above the critical support level, it could see a sustained break from here.
The meme coin has already seen a recovery coming out of the weekend, suggesting that the $0.22 psychological level would hold completely through the uncertain market headwinds. Now, if the Dogecoin price is still able to hold this psychological level, then it could be the signal that crypto investors are buying heavily into the altcoin.
In the case of heavy buying, it could provide the needed push from the current demand level above $0.21. A leg-up from here would push it toward $0.25, where the next major resistance level lies for the digital asset. This makes $0.22 a very important level as it is the target for the bears to break through.
This is because if the bears are able to push the price back down toward $0.22 and cause it to fall further, then the next target lies low at $0.18810. This is the rebound level with demand, thus the price would have to get here before the can bounce again.
The crypto analyst also explains that the current triangle pattern could fail its bullish impulse if the Dogecoin price fails to reclaim higher ground. Also, there is the possibility that the Bitcoin price could crash, taking the crypto market down with it and pushing the Dogecoin price toward further decline.
Why this matters
This altcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on NewsBTCRelated market context
The Bitcoin vs. Nasdaq Signal Has Flipped Bullish
▶Bitcoin Magazine The Bitcoin vs. Nasdaq Signal Has Flipped Bullish Tech stocks are selling off, and Bitcoin is holding. Today’s C...
Lido Puts Liquidity Buffers At The Center Of Ethereum ETP Yield Debate
An Ethereum investment product can advertise staking exposure without putting every unit of its ETH to work. Lido’s October 23 com...
Bitcoin Price Rebounds Again, Peter Schiff Repeats His Crash Warnings
Bitcoin price has once again challenged Peter Schiff’s latest crash warning, after the longtime crypto critic predicted BTC would...
Bitcoin (BTC) Price Prediction: $74K Liquidity Gap Puts $80K Support to the Test
Meanwhile, data from Glassnode and Fasanara Digital show that traditional financial assets are capturing a growing share of deriva...
Bitcoin’s Fed Week Starts With A Fresh Rise In US Inflation Expectations
TL;DR: US household inflation expectations rose in October while consumer sentiment barely changed. The readings add context ahead...
Robinhood Chain Nears $30B DEX Volume While $1.1B DeFi Base Fuels Fresh Tease
Key Takeaways: As reported by DefiLlama, Robinhood Chain has now surpassed $30 billion in 30-day decentralized exchange volume. DE...