Meme cryptocurrency Dogecoin has had several days of interesting price action accompanied by significant volatility. Notably, Dogecoin, which ended the last days of September with a bullish run, has reversed those gains and is back where it left off above $0.10.
According to a technical analysis of Dogecoin’s price action, it is a meme coin broke above a multi-month downtrend last week. However, as it stands, the latest correction in the last 48 hours has seen DOGE going back to re-examine the exit point. As noted by a crypto analyst, this reassessment is critical to DOGE’s performance in the coming weeks and months. A jump or a break below can make or break the price of a meme character.
Dogecoin Retests Macro Falling Wedge
A crypto analyst known as Kevin on social media X, recently made known an interesting piece about the current price action of DOGE. Kevin has built a reputation among his social media followers for his extensive analysis of DOGE’s price action on X. According to the Dogecoin chart he shared, the meme coin, which recently peaked above $0.13, is now retracing its multi-month high line. the wedge that came out successfully last week.
According to Kevin, this type of re-evaluation is common when outages like this one play out. Rechecks and subsequent upward moves often act as exit confirmations. However, in the current state of things, this re-examination could be more than just a re-examination. This is because a break below the trendline would mean that the meme coin is still stuck in a multi-month downtrend and has never broken out as many investors had hoped. This, in turn, could turn into a bearish move that could eventually see DOGE reach a low of $0.085 in the coming weeks or even create a low below that level.
#Dogecoin it is currently retesting the macro falling wedge that emerged last week which is a bullish back test and should occur if these patterns play out. If #DOGE you lose this place and there are big problems. We need to hold this position in this 6 month pattern to… pic.twitter.com/kYTWuQTwNH
— Kevin (@Kev_Capital_TA) October 1, 2024
As a result, $0.11 in the $0.108 area is a key area for Dogecoin bulls to hold on to. In the words of crypto analyst Kevin, Dogecoin needs to “hold this position in this 6-month pattern in order not to fail.”
What’s Next for DOGE?
At the time of writing, Dogecoin is trading at $0.1085 and is down 8.5% in the last 24 hours. If the bulls are able to keep the price above this key zone for the next few days, it will reinforce the validity of the recent and possible breakout pave the way for another look in the coming weeks.
The decline in Dogecoin price in the last 24 hours is not unusual and is part of a wider decline among many cryptocurrencies. I the hype leading up to October (Uptober) has come down to a drop in the price of cryptocurrencies on the first day of the month.
The featured image was created with Dall.E, a chart from Tradingview.com