Dogecoin Holds Strong at 50% Retracement: Bullish Trend Ahead?

• Despite the fourth Bitcoin halving, Dogecoin remained relatively stable.
• Dogecoin experienced a corrective phase over three weeks, marked by a significant price decline from its recent high.
• Dogecoin’s bounce back above the 50% Fibonacci retracement level signals a potential bullish reversal.

Dogecoin’s (DOGE) resilience above key support levels and its potential for a bullish reversal suggest a promising outlook for the cryptocurrency in the near future.

Despite the recent Bitcoin halving event, the cryptocurrency market remained relatively stable over the weekend. This stability extended to major coins like Dogecoin, indicating a balanced stance between buyers and sellers. Notably, Dogecoin has maintained its position above the 50% retracement level, suggesting a bullish sentiment prevailing in its market.

Over the past three weeks, Dogecoin has been experiencing a corrective phase, as evidenced by a downward trendline in its daily chart. This correction began after reaching a high of $0.228 and saw the price drop to a low of $0.13, marking a significant 43% decline.

However, with Bitcoin holding steady above the $60,000 mark, Dogecoin managed to bounce back above the crucial 50% Fibonacci retracement level at $0.143. This level has served as a key support zone, with buyers actively defending it through multiple lower-price rejection candles.

Looking ahead, the post-halving period may usher in a rally across the altcoin market, potentially benefiting Dogecoin. If this materializes, Dogecoin is poised for a bullish reversal, with the potential to challenge overhead resistance levels. A breakout from these levels could signal a continuation of the ongoing rally, with targets set at $0.22 and intermediate resistance expected at $0.2.

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