The A to Z of what Dogecoin [DOGE] investors need to be wary of

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

After slackening due to market-wide liquidations, Dogecoin (DOGE) bears resurged around the Point of Control (POC, red). As a result, it saw a pullback below vital price points while breaking into high volatility. 

Source: Coinstats

With the bullish hammer candlestick rejecting lower prices at the $0.08-zone, an extended streak of green candles can lead to a short-lived revival towards the six-month-long trendline resistance (white, dashed).

At press time, DOGE was trading at $0.0893, up by 2.74% in the last 24 hours.

Source: TradingView, DOGE/USD

After dropping below its POC in the $0.13-zone, the meme-coin lost over 61% of its value as it dropped towards its 13-month low on 12 May. During this fall, DOGE witnessed a fairly swift decline while marking multiple bearish engulfing candlesticks.

Consequently, the sellers depicted a constant edge while holding the price to the lower band of the Bollinger Bands (BB). With the basis line (green) of BB still looking south, the bulls still have a long way to steer the trend to their fancy. However, a timely intervention by the buyers at the $0.08-mark did put DOGE in a position to eye a short-term recovery.

The upside of the current movements could lead to a test of the $0.1-level near its trendline resistance before making a trend-committal move. But, looking at the current market structure, an inability to hold bullish control could cause a pullback. This pullback could retest the $0.081-level before the bulls step back in to stall the sell-off.

Source: TradingView, DOGE/USD

The RSI struggled to snap the 42-mark and headed back into the oversold region.