The Dogecoin price is struggling as some investors start taking profits after the spectacular rally that happened in March. The DOGE token is trading at $0.13, about 10% below its highest point in March and 25% above the lowest level this year. Other cryptocurrencies like Bitcoin and Ethereum have also declined in the past few days.
Dogecoin, like most altcoins, saw its price jump in March despite the existing headwinds in the market. Some of the challenges that happened during the month were the extremely hawkish Federal Reserve, an inverted yield curve, ongoing crisis in Ukraine, and a large hack in the DeFi industry. In normal market conditions, these events would have had a negative impact on Dogecoin and other coins.
Instead, investors embraced a risk-on sentiment and moved to risky assets like stocks. As a result, the tech-heavy Nasdaq 100 index outpaced the relatively safer indices like the Dow Jones and S&P 500 indices in the US. In the same period, the so-called safe-haven assets like gold and the US dollar managed to retreat during the month.
Dogecoin’s performance in April will depend on Bitcoin’s lead. If its price manages to keep rising, there is a likelihood that its price will also do well. Another likely catalyst will be the demand for meme coins like Shiba Inu and Floki Inu.
The four-hour chart shows that the DOGE price made a good recovery in March this year. As it did this, the price formed a rounded bottom pattern. In technical analysis, this pattern is usually a bullish sign. The coin has managed to move slightly below the important support level at $0.1397, which was the upper side of the rounded bottom pattern. It has also crossed the 50-period MA.
Therefore, the outlook for Dogecoin price is bullish because of the cup and handle pattern that has formed. However, a drop below the support at $0.1280 will invalidate the bullish view.
This post was last modified on Apr 01, 2022, 13:32 BST 13:32