As the market retraces from its gains from last week, the Dogecoin price has been put into a tight spot regarding the continuation of its uptrend. So far, bulls have managed to stay above $0.2, but for how long remains a mystery, especially as volume stagnates during this time. However, it is not completely bad news for the meme coin as one crypto analyst has pointed out some bullish formations on the Dogecoin price chart.
Bullish Momentum Is Still Forming For Dogecoin Price
While the current crypto market headwinds have turned bearish, there could still be some hope for the Dogecoin price. As a crypto analyst shows in a TradingView post, there are still some levels where the Dogecoin price is seeing demand. This shines through in the 960-minute chart, which has become the main point of focus.
According to the analyst, there is a lot of strong demand showing up for Dogecoin at this level. This demand has not waned and has instead waxed stronger as the market has tumbled and the Dogecoin price has followed suit. Moving forward, the analyst explains that even if the price does go lower from here, then there is still strong demand for DOGE at this level.
With this demand building up, the Dogecoin price has moved toward retesting the recent breakout level. This is the area above $0.22 where the Dogecoin price began its last move upward. A successful retest and break of this level could confirm a bullish continuation for the price.
However, there is still a lot of pressure from bears who have already pushed DOGE back below $0.22 at the time of this writing. Thus, the next support zone has now moved to $0.2073, as the analyst highlights in the post. In addition to this, there is also a descending trend line resistance that is being tested by the meme coin.
The importance of this descending trend line resistance cannot be overstated as it acts as a make or break level for the price. A break above would be bullish and price would move upward. But a break below this trend line and invalidating the support at $0.2073 could be catastrophic for the price.
Another development that suggests bullish momentum is on the 60-minute chart. Here, the crypto analyst points out the formation of a reverse headed and shoulders pattern. This pattern is historically bullish for the Dogecon price. But it is still important that the cryptocurrency does break out of the trend line before there can be a continuation of the bullish trend which began last week.
Featured image from Dall.E, chart from TradingView.com
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