While crypto markets are generally falling, some altcoins may experience exceptional rallies. We can see this in a popular altcoin in the coming hours. Which altcoin can rise while Bitcoin price is below $20,000? What support and resistance levels should traders watch?
Dogecoin (DOGE) finds buyers at $ 0.0634 at the time of writing. Its market cap is $8.26 billion and trading volume has dropped 25% in the last 24 hours. Due to the negative course of Bitcoin, DOGE has moved between $ 0.06 and $ 0.088 in the last 30 days. While it hasn't taken full advantage of the July recovery, it remains relatively strong to others.
In the short term, Dogecoin (DOGE) price continues its consolidation in a narrow range. However, the lower time frame chart points to a bullish reversal pattern that helps buyers form a recovery rally.
For the dollar, Dogecoin witnessed a 32.4% drop amid its August third-week sales. But the psychological support level of $0.06 was preserved. This support level stopped the correction phase and the price formed a narrow consolidation between $0.065 and $0.06. A short body candle with rejection candles on either side reflects the uncertainty in market sentiment. The four-hour timeframe chart shapes the narrow consolidation into a rounding subpattern. According to the technical setup, this uptrend will encourage buyers to bounce back from the $0.06 support.
Traders will need to watch for a bullish breakout from the neckline resistance at $0.065 resistance. This move will accelerate the bullish momentum in the price and signal the resumption of the recovery rally. Dogecoin investors can see the $0.075 level after this breakout. Conversely, if the sellers continue to defend the $0.065 level, the Doge price could slide below the $0.06 support. In this case, the most important support to stop the decline will be $0.05. In the short term, the $0.65 and $0.075 levels can be viewed as resistance, and the $0.06 and $0.05 levels as support.