In its previous bull run, Dogecoin’s [DOGE] breakout opened a path above the nine-month trend line support (white, dashed). This revival helped the meme coin accelerate growth above its 20/50/200 EMA on the daily chart.
The volatile break from the ascending triangle structure saw a hard hurdle in the $ 0.087 region. This reversal can now find bounce reasons near the $ 0.066- $ 0.065 range.
At press time, DOGE was trading at $ 0.069, down 14.96% in the past 24 hours.
DOGE daily chart
Source: TradingView, DOGE / USD
The return to buy from the 15-month support in the $ 0.049- $ 0.052 range helped the coin maintain a sideways trend over this time frame. Meanwhile, buyers struggled to break out of the $ 0.071 level chains.
While buying pressure has apparently built up around this level, recent growth has confirmed the ascending triangle on the chart.
Given the bullish resurgence trends over the past month, the coin could find reliable bases in the $ 0.065- $ 0.066 range. Any break below this range could put the altcoin in a price discovery phase to reiterate the bearish edge.
However, a buy action at this range can help bulls prevent further losses. Buyers would aim to trigger a rally towards the short-term EMAs in the $ 0.73 zone.
Rationale
Source: TradingView, DOGE / USD
The RSI has finally plunged below equilibrium revealing a bearish edge. The bulls must hold support at 43 levels to keep the possibility of a raise alive.
Interestingly, the CMF and OBV lines have scored higher lows over the past week. This trajectory affirmed the plausibility of a bullish divergence with price action. But the alt still had to show a strong directional trend, as evidenced by the ADX.
Conclusion
The DOGE fell below the short-term EMAs and the $ 0.07 threshold positioned the altcoin for a short-term slow phase. A potential rebound above this sign could suggest a possible awakening. The goals would remain the same as discussed.
Finally, the dog-themed coin shares a 70% correlation at 30 days with the king’s coin. Therefore, keeping an eye on Bitcoin’s movement would complement these technical factors.