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21
11, 2024
What’s Next? Dogecoin (DOGE) Hints at Double Top Pattern Formation, Pepe (PEPE) Loses 21% in 6 Days, But There’s Still Chance
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The price of XRP has been circling $1.10 for the last four days, indicating that it has entered an apparent stagnation phase. There are concerns about whether the bullish momentum has run its course or if this is a brief consolidation before another move, given the lack of movement that followed a notable rally earlier in the month.
The volume has sharply decreased following a spike in buying pressure during the most recent rally. This drop could indicate a lack of demand since it implies that buyers are leaving the market. XRP may have trouble holding onto its current level if fewer players push the price higher.
XRP could return to lower support levels if this keeps up with $0.95 and $0.85 emerging as crucial areas for buyers to keep an eye on. Caution is also advised by the RSI (Relative Strength Index). Although it is still in the overbought zone, which suggests that there was previously significant buying momentum, the lack of follow-through may cause a retracement as profit-taking increases.
Resuming the psychological level of $1.00 is one possible scenario that might serve as support if put to the test. But a decline below this mark could increase selling pressure and drive XRP lower.
Traders should now closely monitor market sentiment and volume profiles. The likelihood of a price drop rises if volume does not increase and buyers do not return to the market. On the other hand, an abrupt increase in volume might rekindle bullish sentiment and indicate that XRP’s sleep could be a sign of an impending breakout.
Dogecoin’s pivotal moment
A possible double top pattern is forming on Dogecoin’s daily chart, suggesting that the cryptocurrency may be approaching a historic turning point. Two separate peaks at comparable price levels indicate a bearish reversal pattern that may portend problems for the meme-based cryptocurrency in the future.
DOGE’s price is currently trading close to the $0.40 mark, seemingly unable to sustain its upward momentum. Given the second peak of the double top formation, this hesitancy raises the possibility that the asset is encountering strong resistance. The probability of a reversal rises if the price is unable to rise above this resistance level.
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Usually when bulls are having difficulty pushing prices higher, the double top pattern signals a waning of buying pressure. If the neckline, which is located between $0.36 and $0.37, is broken with increased volume, this pattern may result in a substantial decline for DOGE. The market may retest lower support levels like $0.28 and $0.26 as a result of such a breakdown.
This bearish scenario gains additional weight from volume profiles. Following DOGE’s recent spectacular surge, trading volume has begun to drop, which is frequently a sign of a trend reversal. The asset may be more susceptible to selling pressure if there is lower volume during attempts to break resistance, which could indicate that buyer interest is declining.
However, a significant volume breakout above the $0.40 resistance level could invalidate the double top pattern and indicate that the uptrend will continue. For the time being, traders should keep a careful eye on important levels, especially the $0.40 resistance and the $0.36 neckline.
PEPE bleeding out
In just six days, Pepe lost 21% of its value due to severe downward pressure. This decline comes after PEPE saw a surge of 120% that put it in the public eye but also made it more volatile. There are still grounds to think that PEPE could regain its footing, even though the correction may seem concerning as long as it adheres to critical support levels.
The graph displays PEPE pulling back from its most recent peaks, and a decline in trading volume suggests that speculative activity has cooled. During the rally, the $0.00002100 level served as resistance; however, it may now turn into a crucial support zone. PEPE may stabilize and try to consolidate before starting another upward move if this level holds.
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The next significant support below $0.00002100 is located at $0.00001550, which is in line with the 50-day exponential moving average and prior accumulation zones. If selling pressure increases, this level might act as a stronghold for bulls. However, a break below this level could signal a more significant correction and possibly a retesting of the $0.00001180 level, which is where the 100-day EMA is currently located.
Following its parabolic run, the asset is undergoing a much-needed correction, as indicated by the Relative Strength Index (RSI), which shows PEPE exiting overbought territory. Although there is less chance of further overheating, this emphasizes the need for investors to exercise cautious optimism. In the short term, PEPE’s success will depend on its capacity to maintain critical support levels.
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