Crypto analyst BitGuru has revealed that the Dogecoin value simply swept a key assist stage following the Black Monday crash. Based mostly on this, the analyst predicted what may occur subsequent and talked about why the foremost meme coin may retest $0.2 once more.
Dogecoin Price Retests Key Support After Black Monday Crash
In an X submit, BitGuru said that the Dogecoin value simply swept key assist close to $0.143 and is displaying indicators of a bullish reversal from the oversold zone. The analyst predicted {that a} sturdy bounce may comply with, with targets at $0.16, $0.18, and a attainable retest of $0.205 as momentum builds for the main meme coin.
The Dogecoin value had crashed to this key assist following the Black Monday crash on April 7, led by Bitcoin, which dropped under $75,000 on the day. Given the sturdy constructive correlation between each belongings, DOGE additionally witnessed a big crash, sharply dropping from round $0.17 to $0.14.
Certainly, the Dogecoin value may quickly witness a bullish reversal because the Bitcoin value has rebounded, touching $80,000 on April 8. A sustained upward pattern for the flagship crypto would additionally result in a reversal for DOGE, which may contact the psychological $0.2 stage as BitGuru predicted.
Nevertheless, from a macro perspective, the Dogecoin value isn’t but within the clear, and there might be obstacles to this bullish reversal. Donald Trump has threatened to impose an extra 50% tariff on China, and China has additionally promised to retaliate if the US president carries out his menace.
Trump’s tariffs are what have led the Dogecoin value and different crypto belongings to crash within the first place, and a back-and-forth of this international commerce conflict would solely probably proceed to hurt these belongings.
DOGE Forming Bullish Divergence
Crypto analyst Kevin Capital revealed that the Dogecoin value is forming a “clean” bullish divergence on the day by day timeframe. He claimed that is one thing to maintain an in depth eye on, because it may decide the foremost meme coin’s trajectory.
In the meantime, Kevin Capital additionally famous that the Dogecoin value dropped once more to check the bull market construction’s “lines in the sand.” Though it broke under the construction, it recovered and closed the day by day candle barely above this assist stage.
This bullish market construction, across the $0.14 space, is important, as a drop under that stage may mark the tip of DOGE’s bull run. Crypto analyst Grasp Kenobi had additionally beforehand warned that the Dogecoin value can not afford to lose the assist trendline at $0.14, indicating that the meme coin would enter a bear market if that occurred.
On the time of writing, the Dogecoin value is buying and selling at round $0.15, up over 5% within the final 24 hours, in response to information from CoinMarketCap.
Featured picture from Adobe Inventory, chart from Tradingview.com
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