Dogecoin (DOGE) price is hovering below support/resistance at $0.07 as the crypto market generally calms down following two weeks of bullish action. The largest meme coin joined in the bullish party triggered by the hype surrounding the potential greenlighting of Bitcoin spot exchange-traded funds (ETFs) in the US.
As the largest crypto climbed to highs around $35,000 last week, so did Dogecoin price, which according to market data from CoinGecko has accrued 7.3% gains in 30 days, 13% in two weeks, and 2.3% in seven days.
However, declines seem apparent on Tuesday during the US business hours with DOGE correcting by 2% in one hour and 3.6% in 24 hours to $0.0671.
The bearish wave is not unique to Dogecoin, considering Bitcoin price is down 0.9% to $34,297, Ethereum sliding by 1.2% to $1,793 and BNB is trading 1.7% lower on the day at $224.
Cumulatively, the total market cap is trending lower by 0.8% to $1.31 trillion implying that the the strong market structure in October is beginning to weaken.
Dogecoin Price Abandons Double-Bottom Pattern Breakout
Dogecoin price tested resistance at $0.072 and almost confirmed an expected double-bottom pattern breakout to $0.1 were it not for the prevailing overhead pressure.
The loss of a tentative support at the 200-day Exponential Moving Average (EMA) (purple) could further weaken the technical structure resulting in a larger breakdown.
As the Relative Strength Index (RSI) sinks deeper into the neutral area, the path with the least resistance tends to flip downwards. Hence, the glaring possibility of DOGE sweeping through lower support areas to collect liquidity and build momentum for the next breakout toward $0.1.
The 100-day EMA (blue) at $0.0649 could help absorb the selling pressure, and reduce the chances of a stronger sell-off. Other key support levels to look out for include the 50-day EMA (red) at $0.0637 and the double-bottom support at $0.058.
Technical insight from renowned trader and analyst Rekt Capital shows that DOGE has been “rejected from channel top after a weekly close below it.”
He added that “every time DOGE performed such a 1W close, it would drop into the channel bottom,” suggesting that investors should acclimatize to losses extending to $0.058 before the trend reverses again.
Indeed rejected from Channel Top after Weekly Close below it
Every time #doge performed such a 1W Close, it would drop into the Channel Bottom
In any case – key triggers are:
• Reclaim of the Channel Top as support or
• Retest of Channel Bottom#Crypto #Dogecoin https://t.co/u8hAe6IO01 pic.twitter.com/jqtI0u4Ttw
— Rekt Capital (@rektcapital) October 31, 2023
The correction to $0.058 would be invalidated if Dogecoin price reclaims the channel top as support. Otherwise, traders may have to wait for the channel bottom around $0.058 for new long entries.
Dogecoin Development Team Ready For Protocol Upgrade
The Dogecoin community is gearing up for a major network upgrade scheduled to take place “on Nov 1, 3 AM UTC (Est. block height 18978410), and will last approximately 2 hours,” according to an announcement shared by @DogechainFamily on Twitter (now X).
Scalability and stability are some of the main features of the protocol upgrade at “Est. block height 18978410.” Network users have been informed that they may encounter “some downtime when carrying out transactions on Dogechain.”
🛠 PSA – Major Network Upgrade [ACTIONS REQUIRED]
💯 Great news Shibes!
The Dogechain dev team has been working relentlessly at pushing out this major upgrade to the blockchain, and we are now ready to go live!
🐶 ⛓ As a result, the community and the builders should… pic.twitter.com/D4LolAzCLS
— Dogechain💜 (Giving away a Tesla) (@DogechainFamily) October 31, 2023
Users have also been advised to “imminently switch their wallet RPC to https://rpc.dogechain.dog. All other RPCs will stop providing service after the upgrade.”
It is not clear if this network upgrade will impact Dogecoin price. Either way, it shows that developers in the ecosystem are working to improve the protocol which affirms their commitment to the future of the crypto project.
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