The cryptocurrency market is facing pressure, particularly Ethereum, which has encountered strong resistance. However, DOGE shows signs of a potential rebound.
Current Situation in the Cryptocurrency Market
The cryptocurrency market continues to feel pressure. Ethereum (ETH) faced strong resistance near the $3,940 mark, sliding to $3,480, reflecting a 7% daily decline. This sharp pullback has affected major memecoins, including Dogecoin (DOGE), which has shed 16% over the past week and trimmed its monthly gains to 14%.
Fractal Pattern of DOGE
Despite the overall downturn, there are interesting signs in DOGE's chart. The current price action is beginning to resemble the fractal pattern from late 2024 when DOGE broke above a long-standing downtrend and reclaimed its 50-day moving average (MA). After this, a sharp correction occurred, retesting the 50-day MA as support, which eventually led to a significant bullish momentum and a 376% rally to the upper boundary of its ascending trendline.
What's Next for DOGE?
For the bullish scenario to remain viable, DOGE must defend the 50-day MA support, currently near $0.1942. A successful bounce here could mirror the breakout sequence of 2024. The next key level to watch would be the 200-day MA, currently near $0.2120. Reclaiming this resistance could spark a renewed uptrend, possibly targeting the ascending trendline resistance above the $0.80 mark. However, failure to hold the 50-day MA could invalidate the fractal setup and open the opportunity for a deeper correction.
Currently, there seems to be an intriguing intersection of past and present for DOGE. The successes achieved in 2024 could be repeated if prices remain above critical levels.
