The broader cryptocurrency market has seen significant corrections over the past six months, driven primarily by the two largest cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH). Dogecoin (DOGE), the leading cryptocurrency, has not escaped this trend, seeing a significant drop in its value.
Dogecoin price faces 55% drop since March high
Since hitting a yearly high of $0.22 in March, DOGE has suffered a massive 55.9% decline, currently trading at around $0.0976. This decline is more pronounced over longer time frames; according to CoinGecko DataDogecoin is now down 86% from its all-time high of $0.73 hit in May 2021.
In the short term, Dogecoin has underperformed the overall cryptocurrency market, which has seen a 6.90% decline over the past week. During the same period, DOGE’s price has fallen by 8.8%, further illustrating the difficulties it is facing.
However, there are emerging bullish signs that could pave the way for a recovery. Cryptocurrency analyst Ali Martinez recently said, He pointed out A bullish divergence has formed on the Dogecoin 4-hour Relative Strength Index (RSI).
Additionally, the analyst noted that the Tom Demark Sequential 9 (TD) indicator is sending a buy signal, suggesting that a price recovery may be on the horizon.
Can DOGE Break Through $0.10?
As the analyst explained, these indicators suggest that Dogecoin’s price could rise significantly above its current trading levels, with the $0.10 level being a crucial milestone not seen since August 24.
Reaching this level would signal a successful recovery of the coin’s 50-day exponential moving average (EMA), which coincides with the $0.10 price point. However, if the bullish momentum fails to materialize, there is a risk that the attempt to reclaim this key resistance will fail.
If DOGE manages to break above the $0.10 threshold, bulls will then need to focus on the next important hurdle at $0.107. This level is important for any further attempts to climb higher and confront the next EMA.
If Dogecoin manages to break through this resistance, it could be poised to retest the 200-day moving average at $0.11. A successful breakout above this level could signal a continuation of the recovery, which could push Dogecoin towards the next resistance level at $0.13 on the daily chart of DOGE/USDT.
Conversely, over the past four weeks or so, Dogecoin’s price has found an important support floor at $0.094, preventing the coin from crashing towards $0.080 again last week, as it did during the broader market crash on August 5.
What is certain is that despite these signs, bullish momentum is absolutely necessary for the currency to be able to push higher resistance and consolidate itself above previous support levels to continue its path to retest its yearly highs.
Featured image by DALL-E, chart by TradingView.com