Evaluating the potential of this bullish case for Dogecoin
Dogecoin (DOGE) oscillated between $0.3261 and $0.1456 for over nine months until the bears flipped the $0.1456-mark from support to resistance on 22 January. This bearish phase continued its trajectory in a down-channel (white).
Now, with the price approaching its long-term support and forming a falling wedge (reversal pattern), DOGE could eye at a recovery towards the $0.12-zone after testing its Point of Control (POC, red) at the $0.11-level. At press time, DOGE traded at $0.1122.
Source: TradingView, DOGE/USD
Since its October highs, the alt has declined by over 69% as it plunged towards its ten-month low on 24 February. During this phase, the 50-EMA (cyan) was a strong selling point, one that shunned most bullish recovery attempts.
The downfall led the dog-themed meme coin to lose the crucial $0.1213-mark that the bulls defended for over ten months. The latest bearish saw a falling wedge after the alt reversed from its then supply zone at the $0.135-mark. Furthermore, the price declined below the seven-week POC towards the $0.11 11-month support.
From here on, while the distance between the 20 EMA (red) and the 50 EMA has slightly overstretched, DOGE would most likely look for a revival from its immediate support. Should the bulls dwindle, any fall below the $0.11-mark could cause a major fallout before the buyers step in to trigger a recovery towards the $0.12-mark.
Source: TradingView, DOGE/USD
In the last three weeks, the RSI has been keeping its 34-mark base intact. Also, over the last two days, it saw a slight uptrend, reaffirming the intentions of the buyers to keep the support sturdy. Now, recovery from this level could be likely in the coming days.
Furthermore, the CMF saw a bullish divergence with the price as it
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