thecryptobasic.com 01 October 2024 11:02, UTC

Maintaining an overall bullish uptrend, will this pullback lead to a higher high for Dogecoin as price action hints at $0.17?

Despite the crypto market’s setback this week, the bullish influence over the past few weeks has set the meme coin and altcoins on a bullish stand. The biggest meme coin in the crypto segment, Dogecoin, has a market cap of $17.30 billion and is currently trading at $0.1184.

Over the past seven days, the meme coin has increased by 9.01%. By Sunday, the weekly gain stood at 16.95%. With a surge in volatility over the past few days, the meme coin is now trading at $0.11836. Will this volatility lead to an uptrend continuation to $0.17?

Dogecoin Faals Under 200-day EMA

On the daily chart, Dogecoin exhibits a falling wedge breakout rally, gaining momentum and reclaiming the critical $0.10 psychological mark. The bullish trend peaked at $0.13 before retracing to retest the 100-day EMA.

Currently, the meme coin is trading between the 100-day and 200-day EMAs, with bullish momentum indicated by the 50-day EMA. Following an intraday gain of 3.62% after an 8.14% drop on Monday, Dogecoin shows signs of a post-retest reversal from the $0.11786 horizontal level.

Additionally, with a piercing candle formation, Dogecoin is gradually building bullish momentum and continuing its higher-low trend formation. Based on the price action analysis in the daily chart, upcoming resistance levels are projected at $0.14026, $0.17394, and $0.22008.

Due to increased supply on Monday, the MACD and signal lines are nearing a bearish crossover. However, the intraday recovery suggests that a continuation of the anticipated bullish trend may prolong the positive trend in the MACD and signal lines.

Short-term Bullishness For Long-term Gains?

In the 4-hour chart, the pullback on Monday breaks below the 61.80% Fibonacci level at $0.11807. Furthermore, it breached the 50-day EMA while taking support from the 100-day EMA.

The dynamic moving averages on the 4-hour chart are maintaining a positive trend, indicating short-term bullishness. Additionally, a rounding-bottom reversal could be in play with a decline to $0.1387 or the 100% Fibonacci level.

The bullish trend struggled to sustain itself above the 78.60% Fibonacci level at $0.12717, resulting in a drop near the 50% EMA at $0.1168. Based on the Fibonacci retracement levels on the 4-hour chart, a continuation of the uptrend with a rounding-bottom breakout rally will likely target the $0.17226 level or the 1.618% Fibonacci extension.

Conversely, critical support levels stand at 50% and 38.20%, respectively, and Fibonacci levels at $0.1168 and $0.10528.