Dogecoin (DOGE) is currently undergoing a critical macro retest after validating a Head & Shoulders formation on its price chart. According to a recent technical analysis by Rekt Capital, this retest is taking place at a confluent support area. This consists of the blue macro-downtrend and the black range-low support.
Head and shoulders pattern leads to crucial retest
Last week, Rekt Capital discussed the potential development of a Head & Shoulders formation on DOGE’s price chart. If validated, this pattern would cause DOGE to drop into the confluent support area. In the latest analysis, the analyst confirms that the Head & Shoulders formation has indeed been validated, leading to the current macro retest attempt.
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The confluence of the macro-downtrend and the range-low support is considered an absolutely crucial area for DOGE. This is because a successful retest at this level could confirm a new macro-uptrend for the cryptocurrency.
It is important to note that the confluence of the macro-downtrend and the range low appears almost perfect on the weekly timeframe. However, for the monthly timeframe, this confluence is approximate.
This difference across timeframes suggests that DOGE could still dip below the black Range Low to touch the blue macro-downtrend on the Monthly timeframe.
Implications of a Successful Retest
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If DOGE manages to successfully retest the confluent support area, it would be a significant milestone for the cryptocurrency. A successful retest would confirm a new macro uptrend for DOGE, potentially setting the stage for further price appreciation in the future.
Dogecoin is currently at a critical juncture as it attempts to retest the confluent support area consisting of the macro downtrend and the range low. The validation of the Head & Shoulders pattern has led to this crucial moment, which could potentially confirm a new macro uptrend for the popular meme-inspired cryptocurrency.
If Dogecoin manages to enter a bullish stance and if the market favors it, DOGE could likely hit $0.2.
