The dog-themed meme coin Dogecoin (DOGE) has witnessed solid resistance around the $0.1055 level, with the bears eyeing a potential retest of the $0.0890 support level. As observed on the daily chart, this threshold is a key area of interest for traders, as it facilitated the recent bullish momentum that propelled DOGE to its current levels. The question lingers: Will the bears hit their target?
DOGE Price Action
The DOGE token has been on a highly volatile trend in the last month, with its price hitting a low of $0.08979 before rising above the $0.095 support. This price sentiment has also been reflected in the daily chart, revealing what could be described as a tug-of-war between the bulls and the bears.
As of press time, Dogecoin exchanges hands at $0.1015, reflecting a 1.52% compared to its previous day’s price and a massive 5.87% dip over the past month. Following this downtick, the meme coin’s market cap slumped to $14,813,560,309, placing it in the 8th spot by market capitalization rankings.
Moreover, its 24-hour trading volume paints a similar picture, dipping by over 2.63% to the $533,702,505 threshold. This signals a potential shift in investor sentiment towards DOGE as the cryptocurrency faces increased selling pressure.
Bears Target the $0.0890 Support
According to DOGE’s TradingView chart, this meme coin swings in a range bounded by the trend lines, forming a symmetrical triangle. Typically, this pattern is formed when there is a series of lower highs and higher lows, with the misconception of a bullish trend due to the equalization of buyers and sellers within the market.
The pattern also forebodes the possibility of a breakout, either up or down, in the near term. Supposing the bearish sentiment continues over the short term, more sellers will likely jump in when the price approaches the previous high of $0.0948, also at the 23.6% Fibonacci third level.
The success of this event could signal solid bearish momentum, resulting in a further decline toward the $0.09 support level. However, if buyers hold steady above the 50% Fibonacci level at $0.1016, Dogecoin’s value could reverse course and start an upward trend.
Such a scenario could lead to a breakout toward the $0.1055 psychological barrier to test the $0.1096 resistance level. The Chaikin Money Flow Index further supports this sentiment. At 0.08, it indicates an inflow of money into Dogecoin, potentially contributing to a bullish movement in the near term.
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