Dogecoin is facing another test near $0.075 as traders assess recent losses against a possible reversal pattern on its daily chart. The cryptocurrency remains under pressure, with buyers needing to reclaim nearby resistance levels before a sustained recovery can develop.
The Bullish Formation Is Composed of Three Falling Waves
Tardigrade Trader presented a daily chart of Dogecoin on October 29 showing three falling waves in the cryptocurrency. This formation could be the Three Drives Pattern that usually occurs at the end of a downtrend; however, this pattern alone is not enough to indicate that a bottom was made.
The first falling wave took place on October 17, when DOGE fell toward $0.076. Afterwards, bulls pushed the price up to approximately $0.085, dividing the first falling wave from the second one.
The second falling wave emerged on October 25, falling to $0.0735. The price rose to approximately $0.082 but could not continue higher because sellers took control.
The third falling wave started to form on October 31. The lowest point of the falling wave is marked by the chart at approximately $0.0715. A green projection indicates the possibility of rising to $0.085, although buyers would have to overcome several levels of resistance to do so.
Exchange Activity Is Not Homogeneous Across Platforms
The provided 24-hour exchange graph reflects diversity in activity across trading platforms. On the left graph, OKX stands out with the largest volume of $42.10 million, with Binance close behind at $27.89 million and Gate at $23.78 million. The activity of Bitget stands at $9.70 million, followed by Coinbase at $7.91 million and Upbit at $7.06 million.
Next Test for Dogecoin Hinges on Key Price Levels
Current market data reveals that the price of Dogecoin stands at $0.07484, reflecting a drop of 0.56% in 24 hours and 3.51% over seven days. The daily volume currently amounts to $507.64 million, with DOGE below the $0.075 key level.
An earlier report showed a recovery to $0.07585 from the low of $0.07231 on October 29, reflecting a rise of 4.90%. The current price has since declined below $0.075.
If a breakout above $0.075 happens, the next resistance level will be at $0.07682. Above that is the seven-day high at $0.08147. A breakout and subsequent rise may reinforce the bullish setup and make the $0.085 target more attainable.
The cryptocurrency liquidations over 24 hours, as revealed in an October 31 market update, amounted to $1.68 billion. Out of that amount, $1.43 billion came from long positions. Leverage traders were forced to close positions amid the overall market decline.
On the lower side, $0.07231 is the first support level to watch, followed by $0.0695. A fall below the October 29 low would weaken the three-swing bullish setup. The question now is whether buyers will defend $0.075.
