Dogecoin Price Seeks Reliable Support Before Bulls Expect Massive Comeback
- The Dogecoin price is sealed in the prevailing consolidation pattern.
- The dog-themed token is looking for a credible line of defense at $0.133 to avoid further decline.
- The lower boundary of the blueprint technical pattern may present a buying opportunity before the DOGE bulls prepare to rebound.
Dogecoin price presents a buying opportunity as DOGE explores the reliability of key support at the lower boundary of the blueprint technical chart. If a credible foot develops at $0.133, a bounce to the upside could be in sight.
Dogecoin Price Drops Before Rebounding
Dogecoin price has formed a parallel channel on the daily chart as DOGE continues to consolidate and blur the outlook. The dog-themed token is likely to continue moving sideways between clearly defined technical levels.
Dogecoin price may continue to be sealed within the prevailing chart pattern, between the upper and lower bounds.
As selling pressure has increased, as indicated by the Arms Index (TRIN), DOGE could drop further to mark the lower boundary of the guiding technical pattern at $0.133, which should serve as a reliable support for the price of the Dogecoin.
If Dogecoin price manages to rebound, DOGE will face immediate resistance at the 21-day simple moving average (SMA) at $0.161 and then the 50-day SMA at $0.168. An additional hurdle will appear at the 23.6% Fibonacci retracement level at $0.179.
Dogecoin price will encounter another challenge at the middle boundary of the dominant chart pattern at $0.209, where the 100-day SMA and 38.2% Fibonacci retracement level intersects.
DOGE/USDT daily chart
The price of Dogecoin might face a big hurdle at the 61.8% Fibonacci retracement level at $0.258, coinciding with the resistance line given by the Momentum Reversal Indicator (MRI).
Greater aspirations will target the upper boundary of the dominant chart pattern at $0.305, which would trigger a 100% bounce.
However, if the bulls fail to reverse the period of lackluster performance, Dogecoin price could drop further towards the December 4th low at $0.130.