Dogecoin Poised For Major Surge, Analyst Predicts Strong Bullish Trend Above Key Level

(MENAFN- crypto Breaking) Recently, Dogecoin (DOGE) has been on a downward trend over the past couple of weeks. Since reaching a local high on January 18, the meme coin has lost over 29% of its value. This decline is primarily due to continuous selling pressure, reflecting the overall uncertainty in the market. Nonetheless, there are signs that this downward movement might be coming to an end as DOGE nears crucial demand levels that historically have helped the price bounce back.

An esteemed analyst known as Scient has shared insights on Dogecoin's technical analysis, suggesting that a significant upward movement is in the cards. Scient points out that DOGE is currently consolidating above the 1-day support level and finding robust support at the 1-day 100 EMA. This indicates a possible trend reversal as buying interest picks up at these pivotal levels.

If Dogecoin manages to maintain this support and surge upwards, it could signify the beginning of a new uptrend. This development would likely attract traders aiming for key resistance levels. An evident breakthrough from this consolidation phase could spark renewed bullish momentum, drawing more investors into the market.

Presently, Dogecoin is trading around a critical demand level of $0.32, with the upcoming days set to determine its short-term trajectory. Market sentiment is volatile, with many analysts anticipating further declines amid prevailing uncertainty in the wider crypto space. The downtrend that commenced on January 18 has strained DOGE, leaving traders vigilant to see if it can retain its current position or slide lower.

Despite the prevailing bearish sentiment, analyst Scient's technical analysis suggests a potentially formidable rally for Dogecoin. Scient highlights that DOGE is consolidating above the 1-day support level and finding considerable support at the 1-day 100 EMA. Historically, these levels have indicated crucial turning points for Dogecoin, suggesting that there might be a resurgence in buying interest.

Scient also notes the presence of sturdy support levels, with significant lows at $0.262 matching the 1-day 200 EMA. These zones, as per Scient, offer favorable opportunities for accumulation. He remains optimistic as long as DOGE stays above these levels, emphasizing that a close below the 1-day 200 EMA would be a definitive bearish indicator.

For now, Dogecoin stands at a pivotal juncture. Sustaining support and pushing higher could pave the way for a robust rally. Conversely, failing to uphold crucial levels may usher in further downside risks. Traders and investors are closely observing whether this consolidation phase will usher in the next major uptrend for DOGE.

Currently, Dogecoin is priced at $0.32 after enduring days of selling pressure and negative market sentiments. The meme coin has struggled to regain bullish momentum since plunging from its January 18 high of $0.43. At this moment, DOGE is stationed at a pivotal level, necessitating bullish intervention to avert further declines.

For Dogecoin to sustain a favorable position, the price must hold above the $0.30 threshold. This psychological level has served as a critical demand area previously, and breaching it could trigger a sharper downturn. Should the bulls manage to uphold support at this level, the subsequent hurdle would be reclaiming $0.35. A breakout beyond this resistance could reignite bullish momentum, setting the groundwork for a robust recovery.

Nonetheless, a failure to defend the $0.30 level could expose Dogecoin to further downward movements. In such a scenario, the subsequent significant demand area hovers around $0.25, spelling a 20% drop from current levels. This level is also in alignment with the 1-day 200 EMA, historically serving as a formidable support. A dip to this extent would likely trigger heightened accumulation. However, currently, all eyes are fixed on Dogecoin's ability to uphold levels above $0.30.

Featured image from Dall-E, chart from TradingView

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