Dogecoin (DOGE): Holding This Vital Support Will Unveil a Relief Rally

  • DOGE price might be preparing to reverse the underperformance period if it maintains beyond the 200 3-day Simple Moving Average.
  • Bulls might target the primary technical setup’s upper boundary next.
  • Nevertheless, Dogecoin might encounter several resistances before achieving the upbeat target.

Dogecoin (DOGE) price counts on a crucial defense line for a relief rally to play out. If bulls reverse the underperformance phase, the dog coin could tag the governing technical formation’s topside boundary at $0.24.

DOGE Price Tries to Escape Downtrends

A descending parallel channel determines Dogecoin’s fate as the meme asset failed to attract market participants. Nevertheless. TRIN, which measures market sentiment, indicated fewer sellers than buyers in Dogecoin’s marketplace.

The original meme coin might enjoy a relief rally, climbing towards the primary technical pattern’s upper boundary at $0.24, revealing a 71% upward move. However, the optimistic narrative will only appear if DOGE sustains beyond the 200 3-day Simple Moving Average around $0.13.

DOGE’s initial obstacle might showcase around the 21 3-day Simple Moving Average near $0.15, then the prevailing chart’s middle border at $0.16, the level corresponding with 23.6% FIB retracement region.

Additional obstacles might emerge at 50 3-day Simple Moving Average of $0.19 (matching the 38.2% FIB retracement zone). Another challenge will appear around the 50% retracement mark near $0.22.

A surge in buying momentum might witness Dogecoin price tagging the bullish aim at $0.24, where the parallel channel’s upper boundary stays. Nevertheless, amplified sell-order will shift the upward case.

That way, DOGE price might test the 200 3-day Simple Moving Average near $0.13 as its immediate foothold. Failure to keep this support might see Dogecoin plummeting towards the 22 January low of $0.12.

Continued selling pressure dominance will have DOGE sliding to the primary technical pattern’s lower border at $0.11.

For now, Dogecoin buyers need to keep the meme coin beyond the 200 3-day Simple Moving Average for possible actions to reverse underperformance. With that, bulls can eye levels at the governing technical setup’s top boundary. Nevertheless, the coin will face many resistances before hitting the optimistic target.

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By Edward Richardson
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