1. Dogecoin’s [DOGE] recent price correction led to about 9% of value shedding, dropping from $0.07749 to $0.06930.
2. If the recent support of $0.06930 remains sturdy, bulls could inflict a price recovery with a potential of over 9% gain targeting $0.07749.
3. The Money Flow Index (MFI) and Relative Strength Index (RSI) suggest that a slight buying pressure had built up, indicating that a price reversal is likely underway.
Dogecoin (DOGE) recently underwent a price correction, in which it shed about 9% of its value, dropping from $0.07749 to $0.06930. If the recent support of $0.06930 holds firm, DOGE bulls are likely to launch a price recovery with a potential of over 9% gain targeting $0.07749. Technical indicators such as the Money Flow Index (MFI) and the Relative Strength Index (RSI) suggest that a slight buying pressure has built up, indicating that a price reversal is likely underway.
The support of $0.07100 has been tested thrice in the past few months, and if it holds, it could signal a price reversal. The MFI, which measures the money flow in and out of the market, has shown an uptick after a recent slump, indicating that accumulation has occurred and that the bulls have taken a position. Additionally, the RSI has been rejected twice whenever it hits the 30-level, which could also serve as a signal that the price reversal is underway.
If the support of $0.07100 holds and the technical indicators point to a price reversal, then DOGE bulls could launch a move forward and retest or break above the resistance level at $0.07749. However, if the support of $0.06930 fails and the resistance level of $0.07100 is broken, then the price could drop further and invalidate the above-mentioned forecast. Therefore, investors should carefully evaluate the market before making entry positions for long trades.