Dogecoin Crashes 20%, But ‘Bull Line’ Signals Hope For HODLers

Amidst a broader crypto market crash, the Dogecoin value is down greater than 20% within the final 24 hours. But crypto analyst Kevin, who posts below the deal with @Kev_Capital_TA on X, has reiterated his stance that Dogecoin nonetheless holds a essential “bull market line” and builds momentum increased if broader market situations enhance.

Dogecoin Should Maintain Above This Value

In a brand new replace, Kevin writes: “Nothing much has changed on Dogecoin since my last post on 3/22. Higher time frame indicators are mostly reset and we are holding the bull market line in the sand of support. This may not be the popular X take at the moment but engaging on people’s fears is not what we do here. As long as BTC cooperates and economic data comes in favorable I say send it higher within the next few weeks.”

He references an older put up from March 22 through which he laid out a complete technical perspective on Dogecoin’s place. In that put up, he pointed to the $0.139 value stage because the coin’s “Last line of bull market support,” warning {that a} sturdy weekly shut beneath the multi-year downtrend line might sign a profound shift in sentiment.

“My #Dogecoin Community it is about that time where I must provide you the Alpha you all desire,” he wrote in March. “If we take a look at DOGE on the weekly time frame we can see that we received a weekly demand candle last week at the ‘Last line of bull market support’ [which is at $0.139] that I pointed out a couple of weeks ago. It will continue to be absolutely vital that Dogecoin hold this level while it resets higher time frame indicators like the 3 Day MACD, Weekly Stoch RSI and 2W Stoch RSI all of which are getting very close to being fully reset.”

In accordance with Kevin’s evaluation, these explicit indicators—that are generally used to gauge momentum and potential overbought or oversold situations—are essential for merchants seeking to pinpoint when Dogecoin would possibly subsequent see an upward value swing. He additionally talked about a goal for Bitcoin to not fall beneath $70,000 if Dogecoin’s bullish framework was to stay intact, emphasizing that broader crypto market situations typically set the tempo for high-beta altcoins like DOGE.

DOGE Vs. International Liquidity

In yesterday’s put up, Kevin delved deeper into the macroeconomic context, overlaying the International Liquidity Index onto Dogecoin’s value chart. In his phrases, “If we take a look at #Dogecoin with the Global Liquidity Index overlaid you can see we are at a very interesting point here. On the LOG chart DOGE is back testing the breakout point of what was the entire bear market range that lasted from May of 2021 to October of 2024.”

This reference to a chronic bear market vary underscores the extent to which Dogecoin’s value has traveled between its 2021 peaks and subsequent declines. He additional explains that this area coincides with the “macro .382” at $0.142 when measuring from the earlier bull market highs to the bear market lows, which he regards as a significant inflection level and a possible springboard for a renewed rally, offered the market cooperates.

Associated Studying

Kevin attributes a big share of crypto value path to broader liquidity situations, writing that “Global liquidity has shown to be throughout all of history a major driver of risk asset prices especially #Altcoins and we can see here that it has been trading perfectly in this downward channel since May of 2022 which lines up with central bank tightening of monetary policy across the globe as inflation was sky rocketing.”

As international financial authorities start to wind down or no less than sluggish the tempo of rate of interest hikes, liquidity ranges could begin to edge increased once more. In his evaluation, this easing, even when gradual, might provide the mandatory gasoline for a breakout in each market liquidity and Dogecoin’s value. “Based on history I believe it will likely start to breakout here. If the correlation remains true as it has through the years then this back test on Doge specially is providing one of the best risk reward ratios you can ask for in a long term hold entry or swing play,” he says, whereas making clear {that a} failure to carry $0.139 “durably below” could be his invalidation level.

At press time, DOGE was just under Kevin’s final “bull line” and was buying and selling at $0.13558.

Featured picture created with DALL.E, chart from TradingView.com