- Ali charts predicted an upside toward $10 if the Dogecoin price stayed above $0.19.
- Open Interest (OI) and technical indicators represented a slight negative stance.
Amidst a significant market selloff in the last few sessions, the Dogecoin price slipped from the upper trajectory. Moving ahead, the token retested the 200-day EMA support zone.
Following the retest, it has been hovering around it, replicating indecision among market participants. However, the market analysts still foresee a potential rally and shared their insights, suggesting a significant rally ahead.
At press time, the Dogecoin price was trading at $0.2494, noting a decline of over 5.77% in the past 24 hours. Its market cap stood at $36.9 Billion, ranking 8th in the overall crypto market.
However, can Dogecoin hold key support levels and sustain the recovery? Let’s break it down.
Dogecoin Could See a Rally Next: Here’s the Analyst Insights
According to a recent post on X by Ali Charts, the DOGE price remained strong and built momentum. If it stays above the $0.19 support level, accumulation will provide additional support for another push higher. A parabolic rally toward $10 could be seen in the next few weeks.
It has been riding gains inside an ascending channel and has continued to uplift gains for the past few months. It was on the edge of the lower trendline support zone, and a bounce could occur next.
Moreover, Javon Marks also shared his insights on Dogecoin. He noted that DOGE in 2017 grew by 90X, and in 2021, the price increased by 306X.
This happened due to increasing retail participation and celebrity endorsement. If history repeats, the Dogecoin price may see a massive bullish surge and could soar toward the $20 mark.
Can Dogecoin Recoup Its Recent Losses?
The critical question traders ask is whether Dogecoin can change its course and reverse its trajectory. Based on the technical analysis, the DOGE price was hovering around its vital support zone of $0.2480.
The tightening Bollinger band was narrowing, which signals a potential move ahead. However, it struggled to remain above the 200-day EMA mark. Furthermore, it experienced significant distribution in the recent sessions, which highlights a strong seller’s grip.
Additionally, the Relative Strength Index (RSI) line is at the oversold trajectory around 31, signaling a rebound ahead.
Meanwhile, the Open Interest (OI) shed over 6.30% alongside the price decrease. This confirmed a decline in investor interest in the past 24 hours. The Long to short ratio stood at 0.9357, highlighting sellers’ firm grip against the mighty bulls.
Also, the OI-weighted funding rate dropped from the positive region and turned negative at -0.0007. This further signified a lack of demand for long contracts.
A break below $0.2340 could lead to further Dogecoin price retracement toward the demand zone of $0.2100 in the coming sessions. Traders should, therefore, closely monitor the support zone of $0.2300 on a closing basis.
The Dogecoin price may maintain gains above the $0.2300. If this occurs, a bullish rebound can be anticipated toward the $0.2700 and $0.3000 shortly.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.