Assessing Dogecoin’s potential to rebound from its defending zone

ambcrypto.com:

Since reversing from the $0.3 level in September last year, Dogecoin [DOGE] correlated with the market-wide meltdown and consistently declined. This decline phase led the dog-themed crypto to match its yearly lows in June and September this year.

The buyers seemingly found reliable grounds in the $0.057-$0.059 range over the last few days.

In its previous bull run, the meme coin’s breakout led to a retest of the six-month trendline resistance (yellow, dashed). The recent bearish pull has realigned the altcoin below its 50 EMA (cyan) barrier.

A plausible retest of the $0.059 zone can set the stage for a buying renewal. At press time, DOGE was trading at $0.0615.

DOGE enters a low volatility phase

Source: TradingView, DOGE/USD

While the bearish pressure seemed to revive near the 50 EMA, the resultant reversal has kept DOGE bulls under control. The $0.067 zone highlights the high liquidity area that the bulls would strive to retest in the coming sessions. But the bearish hammer from the 50 EMA made the near-term bearish inclinations quite apparent.

Given the recent tendencies of DOGE to revive from its long-term trendline support, the buyers would look to induce a rally. Any incline above the 50 EMA could help buyers test the $0.065-$0.068 range before a likely rebound.

A continued pull below the $0.058 mark would put DOGE in a position to book further losses. The sellers would aim to inflict a pulldown toward the 11-month trendline support in the $0.052-$0.055 range.

Nonetheless, the buyers should look for the RSIs close above the midline to gauge the chances of a bull run. A continued sway near the midline would hint at consolidation tendencies. Interestingly, the OBV’s lower peaks bullishly diverged with the price action.

Diminis