Dogecoin registered a massive recovery during the latter half of 13th December after Elon Musk promoted the meme coin yet again. However, DOGE hardly managed to keep its higher momentum as the price corrected down to $0.18. Right now, the bearish pressure is mounting on the asset yet again and a previous low can be tested again. At press time, Dogecoin had a market cap of $23.5 billion and remained ahead of Shiba Inu in the charts.
Dogecoin 4-hour time frame
Irrespective of the bullish breakout for Dogecoin, the asset continued to oscillate within the trendlines of a descending channel. Now, primarily, it has a bullish pattern. However, its immediate price drop after the surge was not ideal. Doge should have managed to consolidate near the $0.22 resistance line but it fell back down to $0.18.
Similarly, Dogecoin has continued to attain Lower highs(LH) in the charts which means it continued to follow the declining trend. Based on Fibonacci Retracements, the asset should hold a position at its current range otherwise a drop down to $0.15 remains in the picture.
Market Indicators
Market Indicators did not react ideally to the recent sentiment surge. After being dominated by sell pressure for the majority of December, buying pressure spiked immediately in the chart. A similar situation panned out for MACD where the indicator completed a bullish shift in momentum but it is far away from being concrete. However, On-balance Volumes are possibly suggestive that the recent spike was not supported by strong buyers as sellers maintained a strong grip.
Will Doge dodge a price drop?
The possibility of going down to $0.15 is still high. With Dogecoin, there is a massive chance that yesterday’s bullish breakout was largely due to Elon Musks’ announcement. He mentioned Dogecoin and suggested that Tesla will accept DOGE for merchandise payments.