Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Dogecoin price could make a 15% recovery as DOGE market attempts to determine a bottom

Source Fxstreet

Dogecoin price dipped nearly 15% after the Friday crypto market bloodbath.
DOGE could make a 15% recovery if Bitcoin price shows strength again.
While a slip below $0.1606 would negate the thesis, the hammer candle is a caveat.

Dogecoin (DOGE) price led the meme coin sector dip as markets followed the Bitcoin (BTC) price south in the Friday bloodbath. With markets still in a state of optimism ahead of the BTC halving, the correction could give traders a chance to buy DOGE at a discount ahead of the anticipated event.

Also Read: Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

Dogecoin price attempts bottom determination

Dogecoin price is down by nearly 15% in the wreckage of the Bitcoin price dump. With it, altcoins and meme coins in particular are down significantly, some as deep as -20% in losses. However, the dump has not reversed the cryptocurrency market sentiment as the second quarter (Q2) of 2024 catches steam. With all eyes peeled on the having, the sector has much to look forward to in the next seven days and then the next several months after that.

Meanwhile, Dogecoin price remains above a crucial support level, demarcated by the ascending trendline. With this support threshold providing a notable buying opportunity twice before, it could be the jumping-off point for DOGE, especially with a hammer candle in play.

For the layperson, a hammer candle is a bullish reversal pattern characterized by a small body at the top of the candle and a long lower shadow or wick resembling a hammer. It manifests when the asset’s price has been dropping, with its appearance showing that particular market is attempting to determine a bottom with sellers capitulating.

It also suggests that buyers are starting to step in and push the price back up. This can be a signal for traders to consider going long or buying the asset. Accentuating this bullish technical formation with the Relative Strength Index (RSI) outlook supports the bullish thesis. Notice the RSI is defending the 45 level, a move that has been seen before March 19, indicated with purple highlights on the RSI chart below.

If the RSI holds above 45, the Dogecoin price recovery could ensue, with the Bitcoin of meme coins likely to retrace back to the 50% Fibonacci placeholder at $0.1946. This would constitute a 15% move above current levels. The Awesome Oscillator (AO) still holding in positive territory reinforces the above thesis.

A show of strength in the Bitcoin price could encourage more buy orders, capable of catapulting the Dogecoin price to reclaim the $0.2287 local top. Reclaiming the $0.2100 threshold decisively would be the first sign.

DOGE/USDT 1-day chart

On the other hand, if selling pressure increases, Dogecoin price could slip below $0.1606, not only negating the bullish thesis but also increasing the odds for further downside, potentially as low as the $0.1283 support. Such a move would denote a 25% drop below current levels.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

Sep 16, Wed

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollar Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Author Suzie

Sep 20, Sun

Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Bitcoin rallies near $86K on improving markets ahead of quarterly options expiry Bitcoin (BTC) market conditions improved over the past week as spot buying pressure strengthened and derivatives positioning increased, pushing the top crypto near $86,000.

Author FXStreet

Yesterday 01: 16

Bitcoin (BTC) market conditions improved over the past week as spot buying pressure strengthened and derivatives positioning increased, pushing the top crypto near $86,000.

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

23 hours ago

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Related Instrument