Dogecoin (DOGE) is currently at a pivotal point, sitting on the 200 EMA, a historically significant support zone that has previously marked trend reversals.
Dogecoin (CRYPTO: DOGE) trades at a pivotal level, sitting on the 200 EMA, which has historically marked trend reversals. If it can maintain this position, a potential rally could follow.
However, if DOGE drops below this key level, further downside could be on the horizon.
Here's a closer look at both scenarios:
Scenario 1: Dogecoin’s Recovery PotentialIf Dogecoin (CRYPTO: DOGE) manages to hold above the 200 EMA at $0.26, a recovery could be on the cards. A bounce off this level may lead to a relief rally, with the next resistance zone sitting around $0.34.A return to the $0.36-$0.38 range might also be possible if momentum picks up, with higher volume and buying strength confirming a trend reversal.
Scenario 2: Bearish ContinuationOn the other hand, if DOGE falls below the 200 EMA, the risk of a deeper correction increases. A break below $0.26 could trigger a sharp drop toward $0.22, with further declines potentially reaching $0.18.This scenario would set up a bearish phase for Dogecoin, and traders would be watching closely for signs of recovery.
Bitcoin And The US Dollar Index (DXY)The US Dollar Index (DXY) has been on a strong upward trend, currently at 108.60, which usually puts pressure on Bitcoin. However, Bitcoin may gain momentum if the DXY starts to weaken.A drop in DXY could trigger Bitcoin to push towards $100,000, but if DXY holds strong, BTC might face further resistance and a potential drop back to $92,000-$90,000.
Ethereum Struggles In The MarketMeanwhile, Ethereum (CRYPTO: ETH) is experiencing its worst performance among the top 10 cryptocurrencies. After a steep decline below $3,000, Ethereum has struggled to regain support.If it doesn’t manage to recover the $3,000 level, the next significant support is at $2,600. A breakdown below that could lead ETH to levels not seen in months, around $2,300.
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