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.
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.