Dogecoin’s sentiment hit 4-month high; fell sharply afterward – Can bulls prevail?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Dogecoin [DOGE] received a double boost this week. Elon Musk’s tweet about a dog as the new Twitter CEO boosted the meme coin’s social engagement. In addition, Bitcoin’s [BTC] sharp rally and reclaim of the $25K further pushed DOGE to $0.09202.
<p lang=«en» dir=«ltr» xml:lang=«en»>So much better than that other guy!— Elon Musk (@elonmusk) February 15, 2023
BTC later lost hold of $25K and broke below $24K, setting DOGE into a sharp correction. However, bulls found steady support.
How much are 1,10,100 DOGEs worth today?
Source: DOGE/USDT on TradingView
DOGE’s short-term plunge was kept in check by the $0.08484 support level. It allowed the bulls to rally and reclaim the 7% lost in the drop.
But the recovery faced an obstacle at $0.08654. Therefore, DOGE could break below the 50% Fib level and retest the immediate support level or 38.2% Fib level before bouncing back to target the 78.6% Fib level.
So, short-term bears could profit at $0.08484 or the 38.2% Fib level of $0.8418 if DOGE fails to clear the $0.08654 hurdle. Short-sellers should watch for a close below the 50% Fib level and retest to confirm the downtrend before making moves.
On the other hand, near-term bulls could look for gains at 50%, 61.8%, or 78.6% Fib levels depending on investors’ risk appetite.
However, the ideal buying opportunity for targeting the above levels is at $0.08484 or the 38.2% Fib level. These levels will offer a great discount alongside an impressive risk-to-reward ratio if DOGE recovers.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
The RSI showed a neutral structure, but the
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