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#Dogecoin price may rebound 25% as market looks to find bottom.
Dogecoin fell 15% following the Friday crypto market crash.
$DOGE may recover 25% if Bitcoin recovers.
The hammer candle is a caution to the thesis, which would fail below $0.1606.
Dogecoin (DOGE) led the meme currency sector drop as markets followed Bitcoin (BTC) in the Friday slaughter. The downturn may allow traders to acquire DOGE at a discount before the BTC halving, as markets remain optimistic.
Dogecoin is down roughly 15% in the Bitcoin price crash. It has driven cryptocurrencies and meme coins to -20% losses. The plunge has not affected bitcoin market sentiment as Q2 2024 gains speed. All eyes are on the having, so the industry has lot to look forward to in the coming week and months.
Dogecoin is above a key support level shown by the ascending trendline. With a hammer candle, DOGE may bounce off at this support barrier, which has twice offered a buying opportunity.
For laypeople, a hammer candle is a bullish reversal pattern with a tiny body at the top and a lengthy lower shadow or wick. It appears when the asset's price has been falling, indicating that sellers are capitulating as the market seeks a bottom.
It also means buyers are entering to raise the price. This may indicate traders to purchase or sell the item. Adding RSI to this bullish technical setup reinforces the bullish argument. On the RSI chart below, purple accents suggest the RSI is defending the 45 level, a move observed before March 19.
Dogecoin may rebound to the 50% Fibonacci placeholder at $0.1946 if the RSI stays above 45. This would be 15% higher. The Awesome Oscillator (AO) being positive supports the aforementioned premise.
A Bitcoin price surge might spur additional purchase orders, allowing Dogecoin to retake the $0.2287 local peak. Regaining $0.2100 would be the first indicator.
However, if selling pressure rises, Dogecoin price might go below $0.1606, undermining the bullish thesis and boosting the possibilities of additional decline below $0.1283.
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