- Dogecoin saw its price bouncing off a technical area.
- The bounce had bulls erasing yesterday’s DOGE losses.
- Another bullish move will see DOGE gaining 20%
Dogecoin (DOGE) encountered an expected wave yesterday and lost 10%, testing the descending trend-line from 16 August. The level test attracted bulls into the market, using the dip as an entry-level, translating to gains today, Wednesday. If bulls take advantage of this move, attracting new investors, market participants might see a bullish surge to the 55-day SMA, representing a 20% upswing.
DOGE Might Surge 20% towards New Year
Dogecoin stood on the wrong foot yesterday as it suffered a price fall beneath bearish momentum as bulls paused and reclaimed the $0.190 mark. The slight plunge translated to a 10% drop, exploring $0.17. As the meme coin bounced from the red trend-line, Dogecoin can witness a bullish reversal in the upcoming 24 hours. That might remove bearish sentiment from yesterday’s action.
Dogecoin price will attract more investors, pushing the prices high to $0.19. With that, Dogecoin’s initial target will be a $0.20 retest. However, the meme assets might see profit booking once more as some enthusiasts fear another rejection that might lead to massive retracements. However, the persistent global tailwind from the Christmas rally might support DOGE’s rise to $0.21, with a 55-day Simple Moving Average as a short-term cap.
Meanwhile, global market tailwinds fading might translate to a push against the red falling trend-line. That will attract bears, entering beneath the red descending trend-line before testing $0.16, exposing the historical area and S10 monthly footing. Depending on sentiment in the global markets, Dogecoin can prevent a crash to $0.14.
Though Dogecoin seems to disassociate itself from the broad market, noting slight gains, its upcoming price actions will rely on crypto spectrum conditions. The cryptocurrency market crashed after BTC failed to stabilize past the $50K level. The coin plummeted to trade under the $47 level. While publishing this analysis, Bitcoin wavered around $46,893, following a 4.6% 24hr loss.
Alternative tokens reflected Bitcoin’s bearishness, most of them hovering in the red region. However, crypto experts remain optimistic, believing the downswings will form a base for massive rallies in 2022. What are your opinions? Comment below.