• Dogecoin [DOGE] recently experienced a price correction of about 9%, dropping from $0.07749 to $0.06930.
• If the recent support of $0.06930 remains sturdy, bulls could inflict a price recovery with a potential of over 9% gain targeting $0.07749.
• The Money Flow Index (MFI) and Relative Strength Index (RSI) both suggest that price reversal is likely underway, indicating an increased buying pressure that could boost DOGE bulls.
Dogecoin [DOGE] recently experienced a price correction, dropping from $0.07749 to $0.06930. This represented a 9% drop in the coin’s value, but some indicators are suggesting that the price could soon recover. If the recent support of $0.06930 remains sturdy, bulls could inflict a price recovery with a potential of over 9% gain targeting $0.07749.
To better understand the current situation and forecast potential future price movements, it is important to evaluate factors such as the Money Flow Index (MFI) and Relative Strength Index (RSI). The MFI, which measures the buying and selling pressure of a security, suggested that a price reversal was likely underway. This was indicated by the uptick in the MFI after a recent slump, which showed that accumulation was happening. Therefore, a slight buying pressure had been built up.
The RSI has been rejected twice whenever it hit near the 30-level. If the trend repeats, RSI rejection at this level could signal a price reversal. The RSI rejection as well as an upward move would signal an increased buying pressure that could boost DOGE bulls. Therefore, DOGE could move forward and retest or break above the resistance level at $0.07749. However, before doing so, investors must evaluate whether the support at $0.07100 can hold.
The support at $0.07100 has been retested thrice, twice in November and once in December. If the support remains sturdy, bulls could launch a price recovery. The support at $0.07100 has been tested multiple times, and if it holds, it could provide a strong foundation for the upside move.
In conclusion, Dogecoin [DOGE] appears to be forming the foundations for a price recovery. The Money Flow Index (MFI) and Relative Strength Index (RSI) both suggest that a price reversal is likely underway, indicating an increased buying pressure that could boost DOGE bulls. This could result in a potential of over 9% gain targeting $0.07749. However, before entering long trades, investors must evaluate whether the support at $0.07100 can hold, as a move below that could invalidate the above-mentioned forecast.