Dogecoin faces resistance at $0.35 amid struggles at $0.32. Can the $0.30 psychological level hold as EMAs turn bearish?
Currently, Dogecoin is trading at $0.31927, with an intraday pullback of 1.46%. This pullback comes after the overnight jump of 3.90%, creating a bullish engulfing candle.
However, the bullish recovery failed to sustain above $0.3250. Furthermore, it has now breached the $0.32 mark.
DOGE Price Analysis
In the 4-hour price trend, the Doge price action reveals a V-shaped recovery, failing to surpass the $0.3488 horizontal level. This has marked the formation of a potential rounding bottom pattern, which is struggling to hold above the 20 EMA line at the $0.32 psychologically mark.
The recent V-shaped reversal formed a bottom at $0.26447, forming a new support for Dogecoin. Meanwhile, the rounding bottom reversal highlights immediate support at the $0.30 psychological mark.
As mentioned in our previous article, Dogecoin risks the breakdown of the $0.35 support level. With this breakdown, Dogecoin has entered a bearish territory.
The bullish support at $0.30 hints at a potential recovery to challenge the $0.35 support turned resistance level. The 4-hour RSI line has reached the halfway level, increasing the upside chances and bouncing off from the oversold zone. Thus, it reflects a boost in bullish sentiments.
Meanwhile, the dynamic average lines in the 4-hour chart have turned extremely bearish. Following the death cross between the 50 and 200 EMA lines, the 100 EMA line has also crossed below the 200 EMA line. As a result, these moving averages have turned into resistance levels.
Analyst Flashes Buy for Dogecoin
Amid the chances of a broader market recovery with Bitcoin holding on to the $94,000 support level, an independent market analyst, Ali Martinez, highlights a bullish signal on Dogecoin.
In a recent tweet, Ali Martinez highlighted a TD sequential buy signal on the Dogecoin daily chart. This suggests the market anticipates a recovery for Dogecoin.
Furthermore, the buy signal was generated near the $0.30 psychological mark, increasing the chances of a bullish run. Based on the transaction levels, the immediate resistance stands at $0.35, followed by the 200 EMA line at $0.3657.
The short-term crucial support remains at $0.30, a breakdown of which will result in a redress of the $0.26 support level.
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