The broader cryptocurrency market has seen significant corrections over the past six months, especially in major digital currencies like Bitcoin and Ethereum. Dogecoin (DOGE), a leading meme coin, has also experienced a notable decline in value.
Since reaching a yearly high of $0.22 in March, DOGE's value has dropped by 55.9%, now trading at approximately $0.0976. According to CoinGecko, this marks an 86% decline from its all-time high of $0.73 in May 2021.
In the short term, Dogecoin's performance has been lackluster, underperforming compared to the overall crypto market. While the market declined by 6.90% over the past week, DOGE's price dropped by 8.8%.
However, bullish indicators are emerging. Crypto analyst Ali Martinez pointed out a bullish divergence in Dogecoin's 4-hour Relative Strength Index (RSI). Additionally, the Tom Demark Sequential 9 (TD) indicator is flashing a buy signal, hinting at a possible price rebound.
If DOGE can break through the $0.10 mark, it would represent a recovery of its 50-day exponential moving average (EMA). This level is a critical milestone that has not been seen since August 24. A successful breakthrough could push the price toward the next resistance at $0.107 and potentially retest the 200-day moving average at $0.11.
Conversely, DOGE has found significant support at $0.094 over the past four weeks, preventing a further decline toward $0.080. To continue its path towards retesting yearly highs, bullish momentum is essential for overcoming higher resistance levels.
