Dogecoin Price Analysis: Potential Risks and Opportunities
Dogecoin’s price trajectory is currently on shaky ground, posing a risk of slipping below its established support level, particularly as it undergoes multiple retests in the four-hour time frame. Prominent crypto analyst UB has shared insights on what to monitor as Dogecoin remains confined within a narrow trading range in the immediate future.
Potential Breakdown for Dogecoin Beyond Crucial Support Levels
In a recent social media update, UB highlighted that Dogecoin’s price pattern is not showing favorable signs, indicating a potential decline below critical support thresholds. Following a rejection at the $0.285 mark, UB identified specific levels where a possible price rebound could occur. However, he emphasized that Dogecoin’s price action remains range-bound between $0.239 and $0.285 until a definitive breakout occurs.
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UB also examined the price movements of Dogecoin on a four-hour chart, suggesting that a retest of the H4 consolidation is likely before any downward movement. He noted that the H4 level is crucial, advising investors to watch for vulnerabilities if a minor bounce occurs from this level.
Risk of Decline in Dogecoin Price
UB further analyzed Dogecoin’s price within a one-hour timeframe, revealing that the H4 level and consolidation have been retested twice. His analysis indicates a significant risk of a sharp decline if Dogecoin breaches the $0.24 support level. Currently, Dogecoin remains in a consolidation phase, trading between $0.24 and $0.27.
Another crypto expert, Kevin Capital, echoed similar concerns, indicating that Dogecoin might face a breakdown. In his update, Kevin pointed out that Dogecoin has yet to surpass the macro golden pocket and the weekly bull market support band. He stressed the importance of monitoring Bitcoin’s performance, as a decline in BTC could further pressure Dogecoin’s price.
Anticipating a Dogecoin Rebound
Despite the potential risks, crypto analyst Trader Tardigrade suggests an optimistic scenario. In his recent analysis, he pointed out that Dogecoin’s Relative Strength Index (RSI) on the four-hour chart has entered the oversold territory. This condition could trigger a short-term price rebound, potentially pushing Dogecoin’s value back to the $0.3 level and possibly higher, reaching up to $0.36.
In a follow-up analysis, Trader Tardigrade maintains a bullish long-term outlook for Dogecoin. He notes that Dogecoin’s historical cycle patterns suggest a possibility of another price surge, as past trends tend to repeat over time.
At present, Dogecoin is trading around $0.25, experiencing a modest increase in value over the past 24 hours, according to CoinMarketCap data.
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