Dogecoin (DOGE) is one of the meme coins that is often underestimated, primarily because of its extremely high volatility and low utility value.
- DOGE has trimmed off 8% of its value
- Dogecoin bulls aim to trigger price rally
- DOGE among most searched crypto
DOGE has sloughed roughly 8% off the coin’s value which plunged from $0.07751 to $0.06932. On the brighter side, bulls could trigger a price rally towards $0.07752.
According to CoinMarketCap, DOGE price has nosedived by 0.21% or trading at $0.0706 as of this writing.
DOGE To Breach Below Key Support Level
DOGE is seen to breach below the key support line of $0.07109, which presents a buying opportunity with the discounted price.
The key support line has been retested several times from November to December. However, can key support hold it enough to roll out a price rally?
If this price can attract more buyers, then this could precipitate a price rally.
During the following few trading days, the bulls may also attempt to break past the current barrier located at $0.07749, before they could gain 10%.
DOGE is seen to have intensified further in terms of developmental activity, which also influenced the price increase but has dwindled in terms of investor interest.
Despite DOGE being dubbed an underdog, the coin has outpaced other crypto assets in the market. In terms of price movement, Dogecoin is among the best performing memecoins in the 2022 bear market.
Chart: TradingView.com
DOGE’s Negative Sentiment Could Hinder Price Reversal
DOGE’s MFI showing an uptick confirms the possibility of a price reversal. More so, RSI has also faced rejection each time it reaches the 30-level.
Rejection of the trend by the RSI at this level may indicate a price reversal if the trend is sustained.
Once it does, the DOGE bulls intensify, which could ultimately bolster a price turnaround. In the meantime, these levels can be treated as long-entry positions.
DOGE total market cap at $9.3 billion on the daily chart | Chart: TradingView.com
In contrast, a stop-loss order would be set at a price lower than $0.06930. In the event that this support is breached, it will suggest that bears now have leverage, and it will invalidate the prognosis presented above.
Meanwhile, many are generally concerned about whether or not the price of Dogecoin will ever reach $1 because it is currently trading at a consistently low level.
The general opinion is that Dogecoin will almost certainly fare far better in the longer term…
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