If the price of DOGE broke through the resistance at USD 0.16, there could be buying opportunities in the short/medium run. A significant bullish volume exceeding resistance at USD 0.13 would indicate that the ground would be clear for USD 0.16.
The price of Dogecoin (DOGE) is undergoing a correction of over 80% from its all-time high. That has led investors to wonder whether the current point will be the best to buy the memecoin.
Dogecoin is trading at around USD 0.126 and has accumulated a loss of 10.3% in the last week. Its daily trading volume is above USD 606.08 million, and its market capitalization is about USD 16.83 billion. It occupies 13th place in the cryptocurrency ranking, according to CoinGecko.
Shiba Inu (SHIB) is just below DOGE, with a capitalization of about USD 13.38 million. The second-largest memecoin is trading at around USD 0.000024 and has accumulated a loss of 11.6% in the last week.
Now Could Be the Best Time to Buy DOGE
Analysts have said that the fundamental base of memecoins is not enough to ensure their large market capitalization. However, nobody can expect them to disappear overnight, as they might obtain further gains if a new broad bullish rally starts.
The large communities behind meme-based cryptocurrencies have created a cushion that prevents prices from going to zero.
While Dogecoin has a Twitter account with more than 3 million followers, Shiba Inu has one with 2.8 million.
Although the price of DOGE has fallen by more than 80%, the sales volume is increasingly low. That shows that the space for drops is becoming increasingly small.
Many other projects are more solid, but the current drop in price is an opportunity to buy Dogecoin. Even so, there might be a further drop before the leading memecoin resumes the dominant trend.
The Weekly Technical Analysis of the Price of Dogecoin
The weekly DOGE/USDT chart shows that the fall in the price has been steadily losing strength. The great bullish rally of 2021 is entirely overshadowing the direction in which the market is moving.
That behavior indicates that the price is making a necessary correction, and the bulls could give a surprise at any moment.
Since Dogecoin is bearish in the short/medium run, there could be more selling. There will likely be selling down to the support zone around USD 0.05.
Before buying, there should first be increasingly high lows on the weekly chart. If the price broke through the resistance at USD 0.16, that would be a good early sign that this will happen.
Short-Term Significant Levels in the price of DOGE
The daily DOGE chart shows a somewhat encouraging scenario for those wanting to buy, as a relevant rally could happen next.
The weakness of sellers to reach effective lows indicates that they have been losing strength. That created a falling wedge, a chart pattern that indicates a possible reversal.
Unless a significant bullish volume breaks through resistance, sellers will keep control. Exceeding the nearest resistance at USD 0.13 would allow opening the way for buying up to USD 0.16.
A further drop in the next few hours/days, hitting a new lower low, would indicate a possible search for support around USD 0.05.
By Alexander Salazar
