Dogecoin Price Today: DOGE’s 40% decline has bounce-worthy potential

source: coinmash
source: coinmash

Disclaimer: The opinion expressed in this article is opinion only and should not be taken as financial advice. Coinmash has no involvement with any assets discussed and urges everyone to do their own research before making any financial decisions.

Quick Take

    • Dogecoin lost 40% of its market value On November 8 during the US midterm elections.

    • On higher time frames, the technicals suggest the DOGE coin will survive the liquidation and could continue rallying higher.

    • Invalidation of the bullish trend is a breach below $0.05.

Dogecoin price plummeted violently on November 8 during the US midterm elections. Following the 40% decline, there are subtle reasons to believe DOGE will recover. Key levels have been identified to gauge Dogecoin’s next potential move. 

Dogecoin price falls sharply

Dogecoin price was painful to see on November 8 during the US mid-term elections. As Bitcoin plummeted, nearly all cryptos followed suit. DOGE, the notorious meme coin fell by 40% in just hours. . The downtrend move is not the most substantial loss for DOGE investors this fall. Despite the fact, DOGE shows bulls might have one more retaliation up their sleeves.

Dogecoin price currently auctions at $0.084. The bears have produced a daily closing candle beneath the 8-day exponential and 21-day simple moving averages. A Fibonacci retracement tool surrounding the previous rally suggests DOGE’s current demise is merely a 61.8% correction. The Relative Strength Index is also still in the supportive bullish territory after rising to extremely overbought conditions during the last rally.

source: tradingview
DOGEUSDT 1-Day Chart

Considering these elements, DOGE’s 2022 bullrun might not be over. An ideal bullish scenario could still arise. If so, DOGE might be able to rally $0.17 and possibly $0.20. A  doji candle near current price levels followed by a bullish engulfing candle could be the classical chart pattern to catalyze the reversal in the coming days. 

The uptrend thesis is not yet been invalidated. The safest invalidation would be a breach of the swing lows at $0.059. A declining rally targeting the June lows at $0.049 could occur if the level is tagged. The bearish scenario would result in a 40% dip from DOGE’s current market value. 

Disclaimer
All articles published on Coinmash are strictly for informational purposes only. Any action that is taken from reading content published on this website is done at your own risk. 

About the Author
Tony Montpeirous
Tony Montpeirous
Tony Monpeirous is a full time crypto trader and chart analyst at Coinmash and FXStreet. His style of trading includes, Elliot Wave, Auction Market Theory, and Classic Price Action techniques. When he is not on the screens, Tony enjoys music, cooking, and learning new skills.