Dogecoin has exhibited downward tendencies for over one year. However, the meme coin has one support zone that kept investors optimistic despite the current bear market.
Unfortunately, Dogecoin lost that barrier, and the altcoin has seen many changes. Meanwhile, the question is, can the alt eventually reclaim the vital support level to support a stable upside?
Dogecoin’s Next Stop
Dogecoin successfully breached a 16-month-long downward line that emerged in May 2021. Moreover, the meme coin closed beyond the mark in March & April.
However, the month of May witnessed the token, plus the entire market crashing. The downtrend saw Dogecoin losing $0.1 as support. More plummets in June made it highly challenging for DOGE to regain the lost support.
Nevertheless, gradual inclines within the past two months have DOGE exploring $0.07. a move past this level will prime the asset for upside, as long as overall market sentiments back consistent surges.
Market participants can expect such a move in Q3 as Q2 remained deteriorating for leading players in the industry, including giants such as Coinbase.
The second-largest cryptocurrency exchange globally lost more than $1.1 billion in the second quarter. Also, the platform’s earning report suggested a struggling business environment due to the crypto market turmoil.|
Therefore, recovery remains possible in Q3, and DOGE has nearly two months to reclaim whatever it lost as the quarter will end in September.
Meanwhile, the meme coin should record an approximately 40% revival, which remains plausible since DOGE managed to rake 32.84% within two months after its June lows.
Before that emerges, investors should keep some optimism and not disappear amid the initial profit signal like they did on July 20 when their accumulation stance switched into liquidation. Patience by investors would support DOGE’s 40% rally before the Q3 end.
As highlighted above, broad market cues remain essential for Dogecoin’s price tendencies. That means the altcoin’s performance will largely depend on overall market sentiment.
Analysts believe the crypto market has a lucrative path forward as inflation numbers cooled. Also, markets seem to forget about recession worries that deteriorated the financial space.
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