In the past 24 hours, the price of Dogecoin (DOGE) has plummeted by 8%, from $0.22 to $0.21, marking one of the largest single-day declines this month, fluctuating in the $0.20-$0.23 range during the day, with significant upward resistance, closing down.
However, trading volume surged, reaching 1.25 billion DOGE at midnight, far exceeding the 24-hour average of 365 million, indicating an increase in liquidation activities, with leveraged position sell orders potentially surging.
Dogecoin's pullback is expected to reach the next target.
Dogecoin is recovering from the support level of $0.2138, and the pullback is a healthy adjustment, testing the previous breakout area. The chart shows a potential double bottom structure, which may form a bullish reversal. The short-term target is $0.24-$0.25 (up 28.83%), and if momentum continues, it may rise to around $0.28.
Need to observe: DOGE support level looks at $0.21, falling below may test $0.20 or $0.19; resistance level at $0.23, breaking through may aim for $0.25. In terms of indicators, RSI is near 40 (no overbought or oversold), but the 20-day EMA is declining, indicating short-term bearish pressure. The K-line pattern shows that the price is close to the trendline support and Fibonacci retracement area, which may be a left-hand buying opportunity.
Long-term bullish investors can buy near $0.21, setting a stop loss at $0.198 to prevent further decline. Short-term focus is on the $0.21 support and changes in trading volume; if sentiment improves, a rebound to $0.23-$0.25 may occur in August.
