Can DOGE Price Defend $0.7 Amidst Current Market Turmoil?

The post Can DOGE Price Defend $0.7 Amidst Current Market Turmoil? appeared first on Coinpedia Fintech News

On November 18, the DOGE price witnessed a sharp reversal from the $0.0876 mark amid increasing uncertainties in the market. This reversal picked up additional momentum when the news spread about the Binance CEO, Changpeng Zhao resigning from his position. In the last five days, the Dogecoin price has declined 14% to currently trade at $0.074.

However, a look at the daily timeframe chart shows this correction is part of the wedge breakout, indicating the Dogecoin price prediction is bullish in the mid-term.

Multiple Supports Prevent Dogecoin From Major Correction

Source – Tradingview

For nearly a year, the Dogecoin price has been walking a steady downtrend under the development of a falling wedge pattern. In theory, this chart pattern indicates the exhaustion of bullish momentum, as it is often spotted at the maturity of a downtrend. 

Amid the early November recovery, the DOGE price provided a bullish breakout from this upper trendline and reached a high of $0.0876. However, amid the recent downturn in the crypto market, DOGE price witnessed a sharp lead-off reversal to reach the current trading price of $0.074. 

The declining price is likely to retest the upper-trendline of the wedge pattern, this time as a potential support. In addition, this level coinciding with the 50 and 200-day EMA and 61.8% Fibonacci retracement level creates a strong support zone for buyers. 

If the buyers manage to sustain this level, the post-correction rally could surge 60% higher to hit the $0.118 mark.

Technical indicators:
RSI indicator: The daily RSI slope wavering at 50% reflects a neutral stance but is more inclined to negative sentiment with the current downturn.

EMA: A bullish crossover between the 50-and-200-day EMA around $0.07 should create an additional layer of support for buyers.

Will the DOGE Price Fall Back to $0.57?

If the market sentiment worsens, the Dogecoin price breakdown from the $0.07 threshold will pave the way for significant downfalls. Losing this multiple support at once could intensify the supply pressure and tumble the coin price 17% down to the October low of around $0.057,