Dogecoin price has not shown any bullish momentum as other meme coins hit new highs. Market instability seems to be affecting DOGE as it has been in free fall for about three weeks. However, this downward trend could end if history repeats itself.
Dogecoin price has dropped 32% over the past three weeks. Currently, DOGE seems likely to correct another 15% and revisit the $0.196 support level.
While the short-term outlook is bearish, market participants can expect Dogecoin price to show some sort of bullish response as it approaches $0.196. The last two times (August 4, September 28), DOGE tested this support, after which a 70% increase was observed for two to four weeks.
Investors can expect the current pullback to stabilize around this support level, making it a good buying opportunity. In an optimistic situation, Dogecoin price is likely to bounce back from $0.196 and trigger another rapid rise that could push DOGE to $0.311.
But if it increases on selling pressure around $0.196, we could see a retest of the most important support level at $0.16. If Dogecoin price closes daily below this support, it will invalidate the bullish argument and potentially trigger a 50% correction to the $0.08 support base.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.