These Key Factors Reveal That Solana And Dogecoin May Have Bottomed Out

    • Solana’s bullish case slowed down at $35 after a more than 20% ascent from the primary support at $26.
    • Higher support at $30 is required to keep bulls abreast for the next run-up toward $50.
    • Dogecoin’s price may settle for consolidation after abandoning a V-shaped recovery at $0.064.

    Both technical and macro factors have changed drastically for Solana and Dogecoin following the recent bearish market activities. The competitive smart-contracts token was forced to abandon the push to $50 with losses gaining momentum to $26. Patient investors were, however, treated to a relief rally on Thursday as SOL jumped by more than 20% to trade at $32.

    On the other hand, the leading meme token was not left behind as market participants shifted their attention to altcoins. The uptick in Dogecoin’s price brushed shoulders with $0.064 before retracing slightly to $0.058. Bulls do not seem to have wavered and based on robust support areas highlighted by IntoTheBlock, further recovery may be on the horizon.

    Has Solana Factored In The Bottom?

    The Moving Average Convergence Divergence (MACD) indicator has painted a relatively bullish picture for SOL on the longer-term two-day chart. Gains might become sustainable if the 12-day Exponential Moving Average (EMA) crossed above the 26-day EMA. Additionally, bulls would be on the safer side if the MACD persistently moved upward to close the gap to the mean line in the coming days.

    A glance at the chart revealed that the ongoing recovery had suffered a setback at $35. For this reason, Solana’s price danced at $32.5 at the time of writing. If support at $30 fails to hold, there is the likelihood of SOL revisiting the primary support (bottom) at $26 as shown by the grey band on the chart.

    The position of the applied moving averages above Solana’s price also adds credence to the bearish outlook. In other words, the token is not out of the woods and further declines cannot be ruled out, especially with the 50-day SMA beneath the 200 SMA, and the 100 SMA moving quickly to cross below the 200 SMA.

    SOL/USD Two-day Chart

    Relief As Solana, Dogecoin Lead Altcoin Recovery; Here Is What May Happen Next?
    Tradingview chart: SOL/USD

    Is Dogecoin’s V-Shaped Recovery Sustainable?

    The battle to change the course of the trend in the cryptocurrency market has reached a dire moment. As for Dogecoin bulls, the uptick to $0.064 was a sign that recovery was possible and indeed achievable in spite of the widespread bleeding.

    A V-shaped recovery came into the picture but with the barrier at $0.064, it may become obsolete. Besides, the Relative Strength Index (RSI) has been rejected from above the midline as bears rise to oppose the bullish move.

    Declines are set to carry on if Dogecoin’s price does not embrace higher support, preferably at $0.054. The weekly low at $0.05 is going to function as the last line of defense to prevent DOGE from trimming more of its value towards $0.04.

    DOGE/USD Four-Hour Chart

    Relief As Solana, Dogecoin Lead Altcoin Recovery; Here Is What May Happen Next?
    Tradingview chart: DOGE/USD

    A consolidation period might take precedence based on IntoTheBlock’s insight on holder behavior. For instance, the resistance between $0.057 and $0.058 has been emphasized by around 50,700 addresses that bought 1.23 billion DOGE in the region. For recovery to carry on, buyers have to crack the barrier and push to $0.065.

    On the downside, strong support has been highlighted by the IOMAP cohorts from $0.053 to $0.055. Here, roughly 21,300 addresses previously purchased 985 million DOGE. It is unlikely that holders within this range will allow Dogecoin to drop further amid speculation for gains to $0.065 and $0.1, respectively.

    John Isige
    John is a cryptocurrency technical analyst, who looks at micro, macro and fundamental factors affecting market trends.

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