Amid the recent recovery rally, the billionaire Elon Musk provided a slight boost to DOGE price, reaching the $0.17 mark. However, last week’s sell-off in the crypto market sank the altcoin to the immediate support of $0.133. The buyers attempt to push the price higher, but sellers undermine them by forming evening star candle
Key points:
- The DOGE price forms an evening star candle in the daily chart
- The 24-hour trading volume in the Dogecoin coin is $661.2 million, indicating a 54.8% loss.
Source-Tradingview
The V-shaped recovery initiated from the $0.11 support pumped the Dogecoin(DOGE) price by 54% up to $1.7. However, the sellers retaliated with a higher force and turned the price down with a bearish engulfing candle.
This sudden drop in DOGE price was triggered by a flash crash in Bitcoin price by April’s first week. As a result, the memecoin slumped to the local support of $0.133, registering a 21% fall.
Furthermore, the altcoin rebounded from support with four consecutive green candles, displaying an 8.88% gain. However, these green candles reflected small bodies and higher price rejection, indicating weakness in the buying pressure.
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Today, the DOGE price is down by 2.2% and teases a revisit to $0.133 support.
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For coin holders: The DOGE traders should closely watch the $0.133 support as a bullish reversal from this level would form an inverted head and shoulder pattern. This price pattern with a neckline at the $0.17 mark could ascend the coin price above the $.02 mark.
However, the bullish thesis will be invalid if sellers dump the DOGE price below $0.133 support, threatening a freefall to march bottom support of $0.11.
Technical indicator
Despite a significant correction in price action, the ADX slope barely dropped to any extent, accentuating a sustained bullish momentum.
The 50 DMA slope aligned with the bottom support of $0.134 provides solid support for buyers. However, the coin price trading below the 200 DMA indicates an overall bear trend.
- Resistance levels- $0.17 and $0.2
- Support levels- $0.13 and $0.11
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