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Long-Term Dogecoin Channel Shows How Far Away the Bottom Is

Dogecoin (DOGE) has been in a downtrend for the last 13 months, with the price action trading inside a descending channel. In this article, we used the weekly log chart to zoom out and see how far away the bottom of this bearish cycle could be from here.

Descending Channel

When zooming out, the long-term descending channel encapsulating the price action starting from the May 2021 peak is more visible. In the short term, we broke and closed below the middle of the channel, which now exposes the lower channel support.

The bottom of the channel stands at $0.036, which is near the bottom of the previous consolidation that led to the last leg higher in DOGE price. Therefore, this area is a significant price zone where DOGE can bottom.

Currently, the $0.05 support held, and the price bounced, but as long as we remain below the middle of the descending channel, the sentiment remains bearish.

Stochastic Oscillator

The stochastic oscillator is also the most oversold it has ever been, and it already had a crossover to the upside. This development might slow down the current selling pressure, but ultimately we’re still drawn to the bottom of the channel.

What is a Stochastic Oscillator?

The Stochastic Oscillator is a momentum indicator that shows the location of the closing price of a crypto in relation to the high and low range of the price of a crypto over a period of time, typically a 14-day period. It is plotted on a scale from 0 to 100.

Looking forward: Any subsequent rally can face possible resistance near the $0.063 - $0.07 price zone, which is the middle of the channel.

Read more about Dogecoin and other meme coins in our latest blog.

dogecoin and other meme coins
dogecoin and other meme coins

Meme coins continue to receive traction in 2022. Today, popular meme coins are not only used as payment methods for real-world purchases but have also received a degree of mainstream adoption. However, one cannot ignore the fact that meme coin prices are heavily influenced by community sentiments and social media.

There are two sides of the coin to explore here: some believe that meme coins are doomed to fail, while others believe that meme coins can spread awareness about digital assets.

So let’s dive into the most popular meme coins in 2022, and where they can go from here.

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