Dogecoin Price Takes a Hit Following Market Downturn

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Markets followed Bitcoin‘s southward plunge in yesterday’s bloodbath, with the meme coin sector leading the drop, and Dogecoin (DOGE) price also taking a hit. While markets remain optimistic ahead of BTC’s halving, DOGE’s correction wave could offer investors a buying opportunity before the anticipated halving event.

Dogecoin (DOGE) Price Suffers in Market Slump

As the leader of the meme coin world, Dogecoin (DOGE) price retreated by approximately 15% following the drop in Bitcoin’s price. However, altcoins and meme coins were largely affected more by this downturn, with some altcoins experiencing losses up to 20%.

Despite the downturns, optimism among investors continues. Dogecoin’s price remains above a significant support level on the rising trend line. This support has previously offered significant buying opportunities, and considering a hammer-like candlestick formation, it could be a jumping-off point for the cryptocurrency DOGE.

Pay Attention to the Hammer Candlestick Formation

The hammer candlestick formation is known as a bullish reversal pattern with a small body and a long lower shadow. This pattern emerges during price declines and indicates an attempt to find the asset’s bottom levels.

It also signals that buyers are entering the market and starting to push prices back up. This could be a signal for investors to consider taking long positions or buying the asset. Moreover, the bullish formation being supported by the RSI outlook indicates the strength of the rise. The RSI defending the 45 level suggests that Dogecoin (DOGE) could start to recover and move towards the 50% Fibonacci retracement level. This scenario sets the 0.2 dollar level as a target for the price.

Strong Movements in Bitcoin Price Should Be Monitored

Cryptocurrency flagship Bitcoin’s strong movement could encourage Dogecoin (DOGE) price to reclaim its local peak. However, if selling pressure increases, DOGE price could fall below $0.1606. This situation would not only temper bullish expectations but also increase the likelihood of further declines.

In conclusion, the coming days and weeks could be exciting for the cryptocurrency Dogecoin (DOGE). Investors should monitor the $0.2 levels as a target for the price.