- Summary:
- Dogecoin price is still below a crucial support-turn-resistance level despite rebounding from its record-low.
Dogecoin price is still in the bear market despite rebounding by about 13.30% from its record-low within a span of one week. For two sessions now, it has made rather subtle movements at around $0.1400. The trend is also observable in other cryptocurrencies including Bitcoin- the leading crypto by market capitalization.
In the horizon is the national security memorandum expected in the coming month. The executive action expected from President Biden’s administration is set to involve holistic regulation of digital assets. In the past, regulations have been a key headwind from this class of financial assets that thrive from the lack of government interference.
Nonetheless, the expected memorandum may not necessarily be negative for cryptos. Seeing that the adoption of digital assets has risen significantly in recent years, governments are seeking to recognize them under an existing framework rather than ban them.
Dogecoin price prediction
DOGE has been on a rebound for about a week after dropping to its lowest level on record at 0.1200. Even as it bounced back from last week’s low, price swings have defined its path in the current week. After rising to 0.1546 a few sessions ago, it has erased some of the gains to hover around 0.1400.
At the time of writing, Dogecoin price was at 0.1392. On a four-hour chart, the formation of a symmetrical triangle points to probable range-bound trading in the short term. Notably, the pattern tends to end up in a trend similar to the one before its formation.
The symmetrical triangle began its formation in the past weekend. Prior to that, the altcoin was on a downtrend. From this perspective, I expect it to trade within a horizontal channel as the bears eye an opportunity to retest the record-low of 0.1200.
The upper and lower borders of the aforementioned range will likely be at 0.1500 and 0.1325 respectively. While the outlook is rather neutral in the immediate term, the bears are still in control. As such, a move below the range’s lower border will give them an opportunity to retest its record low of 0.1200. This thesis will be invalidated if Dogecoin price rebounds past the support-turn-resistance zone of 0.1500.
