Here’s what you can expect from Dogecoin as it approaches $0.15

Dogecoin (DOGE) was on a long-term downslide for over four months. This bearish phase saw a down-channel trajectory (white) on its daily chart.

Assuming there is a strong rejection of higher prices at the convergence point of long-term trendline resistances (dashed lines), DOGE could see a near-term setback before continuing the bullish rally. Any close below the $0.14-zone could lead to a test of the $0.13-support before a buying resurgence. At press time, DOGE traded at $0.1496, up by 3.17% in the last 24 hours.

DOGE Daily Chart

Since its October highs, the alt lost the majority of its value as it plunged towards its ten-month low on 24 February. During this fall, DOGE witnessed a four-month-long descending channel (white).

The downfall led the altcoin to lose the crucial $0.14-mark long-term liquidity range (Point of Control/POC), one that offered the highest liquidity in the last three months. The latest recovery saw a patterned breakout after the alt reversed from its long-term $0.11 support. As a result, the price jumped to its 20/50 EMA and reclaimed the lost POC.

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The POC would be an important area to affirm the strength of the current rally. With the confluence of resistances created at the current level, a pullback from here would find a test near the POC in the $0.14-zone. But with the 20 EMA undertaking a bullish crossover, the bulls affirmed their increasing edge in the days to come.

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Rationale

Source: TradingView, DOGE/USD

Since the past week, the price saw higher peaks while the RSI struggled to match its weekly high. This reading revealed a weak bearish divergence on its daily chart. Further, the CMF marked lower highs during this timeframe, depicting a bearish divergence with price. Thus, a possible pullback could be lurking around the corner.   

Conclusion

Considering the readings on the RSI and CMF a setback towards the $0.13-$0.14-zone is plausible. With the near-term EMA jumping above the 50 EMA, the bulls would likely continue their rally in the days to come.

Also, the dog-themed coin shares a whopping 96% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.