Dogecoin Recent Drop To $0.08: Despite Volatility, Experts Maintain Strong Bullish Outlook

Dogecoin, the original meme-based cryptocurrency, dropped below $0.10, worrying investors. Despite this, some analysts are optimistic about its future. Recent analysis shows the price falling to around $0.104, which was expected.

DOGE’s recent price surge following a low point demonstrates significant resilience with a decisive short-term movement. This suggests active buyer engagement, possibly indicating an emerging bullish trend.

According to experts, the current fluctuations could be attributed to an extended fifth wave within a broader correction phase. Analysts speculate that Dogecoin might revisit the $0.08 mark before potentially resuming its upward trajectory.

Despite the token’s short-term bearish outlook, the analyst pointed out several positive factors bolstering Dogecoin’s bullish case. These include a distinct pattern indicating the price may have reached a bottom, a prediction validated by the subsequent price movement. This trough coincided with notable divergences on longer timeframes and algorithmic indicators.

The recent upward movement in the micro scale appears promising and impulsive. Currently, I’m observing a potential completion of the yellow wave, possibly indicating an extended fifth wave of C with a potential final dip towards around 0.08.

On the larger scale (white), we’ve seen a precise 1-1 correspondence with A, just shy of the channel boundary, accompanied by significant divergences on higher time frames and algorithmic activity. Breaking through the yellow line would be critical as it could invalidate the extension count and bolster confidence in the recent low being established.

Dogecoin Holds Strong With $24.88B Market Cap

Moreover, Watch closely for a strong resistance zone marked by the yellow line on the chart. If this level is breached, it would invalidate the bearish trend and strongly indicate that the market has bottomed out.

Investors are favoring meme coins, especially on Binance, the world’s largest cryptocurrency exchange. As of July 9th, 2024, nearly half of the top ten cryptocurrencies by 24-hour trading volume on Binance were meme coins.

Dogecoin secured the second position among meme coins, with a 24-hour trading volume of $727.36 million. Despite a modest 2.89% price increase, DOGE maintains a substantial market capitalization of $24.88 billion.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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