Dogecoin price is trading at $0.0628 with a bearish bias, down 0.65% on the day and 23% over the last 30 days. DOGE has just undone all the gains made between June 15 and July 29. The technical setup, however, shows that the meme coin had the potential to recover in the near term.
DOGE Could Rise to $0.08
Dogecoin price had created a double bottom pattern around the $0.060 psychological level after retracing the rounding bottom’s low. This is a highly significant bullish setup because the last time the meme coin bounced off this level, it surged 39% to $0.0838.
Increasing buying pressure from this level would push the price higher toward the 50-day and 200-day Simple Moving Averages (SMAs) at $0.0690. Higher than that the 100-day SMA at $0.0709 would present the next barrier and later the cup’s high at $0.782.
Such a move would represent a 27% increase from the current price.
DOGE/USD Daily Chart
Apart from the technical set up, the Moving Average Convergence Divergence (MACD) indicator had begun facing upwards. This suggested that the market conditions had begun turning in faviur of the upside.
On the downside, both the MACD and the Relative Strength Index (RSI) were moving within the negative region. The price strength at 34 suggested that the bears were in full control of the Dogecoin price.
Moreover, the moving averages were facing downwards. They had just sent a death cross. This is a call to sell Dogecoin that took place on August 25 when the fast-moving 50-day SMA crossed below the slow-moving 200-day SMA.
As such, a daily candlestick close below the $0.060 psychological would invalidate the above positive thesis with DOGE dropping to $0.055. In highly bearish cases, increased overhead pressure could pull the Elon Musk-backed crypto toward $0.05 or lower.