Dogecoin price slipped below the $0.15 level as part of a broader crypto market decline. However, a recovery could emerge after crossing $0.20. The meme coin is forming a consolidation after the breakdown last week, where the short-term sellers continue to exert pressure. At this moment, DOGE is stagnating near an important support area, where buyers are trying to recover momentum.
The total crypto market has dropped 4% in the last 24 hours and has a 7 days of loss.
Bitcoin price went below of $87,000, and ETH price went below $3,000, contributing to the bearish market. Should Dogecoin clear above $0.20, it could become bullish again to initiate a wider recovery period.
Dogecoin Price Forms Falling Wedge as Analyst Flags Possible Bullish Reversal
Crypto Trader has identified a possible bullish pattern on the Dogecoin price in a two-day chart. The analyst observed that the price movement of DOGE seems to be compressed in a falling wedge pattern. This trend is usually an indication of the diminishing downside pressure in prolonged pullbacks.
TweetThe chart indicates that Dogecoin is recording smaller highs and smaller lows as the range narrows. This kind of behavior indicates a possibility of sellers losing a feeling of momentum. The analyst pointed out that falling wedges often end up with an upward breakout after the resistance is broken.
Dogecoin Derivatives Show Volume Surge
Dogecoin derivatives data showed mixed signals as trading activity increased while leveraged positioning declined across major platforms.
Recent statistics had shown that there was a sudden increase in the volume of derivatives trading, and this showed the interest in the market by the players on a short-term basis. Volume was increasing by over 37% to about 3.14 billion in the session.
Meanwhile, open interest decreased, which represented fewer open positions of futures traders. The open interest decreased by close to 8% and stood at approximately $1.36 billion.
Source: CoinglassThe divergence implies that traders turned over more without long-term leverage. Such moves are seen as a warning by the market participants about price uncertainty.
Can DOGE Price Reverse Trend and Aim for $0.20 Again?
As of the reporting time, the DOGE price traded at $0.1288, stabilizing after a prolonged decline on the four-hour chart.
The Dogecoin price is below the resistance of $0.15, and this has suppressed the upside momentum since the end of November. The price action, though weak, has been experiencing slow downside pressure around the support zone of $0.1250.
The Immediate support is at $0.1250, and then there is a stronger demand area, which is at $0.12. A lower breakdown of less than $0.12 may reveal to downside targets of $0.11. The current levels of holding could enable DOGE to develop a recovery base.
If buyers reclaim $0.1350, the Future Dogecoin outlook could move toward $0.15 resistance. A clean break above $0.15 may open upside targets at $0.18 and $0.20.
Source: DOGE/USD 4-hour chart: TradingviewMomentum indicators are indicating a declining power of sellers, but confirmation is still weak.
The MACD remains in the negative, although the bars on the histogram are flattening, and bearish momentum is decreasing. The RSI is a bit under 30, an indication of oversold markets that most commonly follow a short-term recovery.
Source: https://coingape.com/markets/heres-how-dogecoin-price-could-rise-after-crossing-0-20/
