With the market remaining indecisive, Dogecoin has found its way into another accumulation phase after being rejected by bears once again. This has seen its price stuck just above $0.2, with a failure to mark any successful breakout. However, with accumulation trends, they often tend to form the basis for the next move, which could happen soon. Naturally, there are two ways the price could go from here, so we take a look at the next notable levels.
The Bullish Case For Dogecoin
Crypto analyst Lingrid has explored the possible directions that the Dogecoin price could go in when the accumulation trend does come to an end. The first is the bullish scenario, given that the Dogecoin price has seen the formation of a major structure.
The current structure shows that the Dogecoin price is actually still trading inside of a descending structure. This comes after the rejection from the resistance trendline that pushes the price downwards from $0.24. But this has not completely sent the Dogecoin price into the arms of bears, as there is still some bullish momentum.
Mostly, the price has continued to trade sideways, meaning that both sides have an opportunity to pull Dogecoin in their favor. For the bulls, though, the major level for them now is to maintain the support that has developed at $0.2 over the last few weeks.
As Lingrid explained, holding this support could see a potential rebound from here. If this break of structure is completed, and there is a confirmation above $0.22, then the next major levels would lie at $0.2420-$0.2670. This would make $0.2-$0.21 the ideal buy zones.
The More Bearish Scenario
As mentioned above, the Dogecoin price is still trading sideways, so the bears have as much of a chance as the bulls to claim control. Since the bulls have to maintain support at $0.2 to keep the momentum going, that makes it the level to break for bears to trigger further downsides.
Since the market is still showing low momentum and overall weakness, then a general decline could pull the Dogecoin price lower. In the case of a break of the support at $0.2, Dogecoin could be subject to a deeper correction. Add in the uncertain macro headlines and the decline in liquidity flow into the market, then it spells doom for the meme coin if bears take over.
Featured image from Dall.E, chart from TradingView.com
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