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Dogecoin started losing value as soon as it fell outside its ascending parallel channel. At the moment, Dogecoin is trading sideways. Over the past 24 hours, DOGE rose by 0.3%, confirming that the coin was stuck in a consolidated price region.

Last week, Dogecoin reported nearly 4% gains. The technical outlook for Dogecoin price showed that bearish momentum has set in. The demand and accumulation for the same coin depreciated when it started trading sideways.

The meme coin noted a pullback in price after breaking through the $0.88 resistance level. Over the past few days, Dogecoin has seen a substantial influx of buyers; however, selling pressure has been building at press time.

Overall, the meme coin has a bullish structure as it managed to hold its price above the 200-Simple Moving Average line. In a shorter timeframe, Dogecoin might retrace near the $0.74 level before recovering or falling further in value. DOGE’s market capitalization has fallen slightly, indicating that selling pressure has mounted on the chart.

Dogecoin Price Analysis: One-Day Chart

Dogecoin
Dogecoin was priced at $0.81 on the 1-day chart | Source: DOGEUSD on TradingView

DOGE was trading at $0.81 at the time of writing. The coin corrected after hitting the price level of $0.88. The immediate resistance of the meme coin stood at $0.87, near the 61.8% Fibonacci retracement level. Breaking above the $0.87 mark may push DOGE to the $0.104 resistance mark.

On the other hand, if Dogecoin fails to stay above the $0.74 support level, it may fall to $0.66. If demand picks up slightly, Dogecoin is unlikely to fall below the floor price of $0.74. The amount of Dogecoin traded in the last session has decreased, indicating that there has been a decrease in buying pressure.

Technical analysis

Dogecoin
Dogecoin noted a drop in buying strength on the 1-day chart | Source: DOGEUSD on TradingView

The meme coin represented a dip in demand as buyers began to decline on the daily chart. The Relative Strength Index (RSI) retreated after settling near the 70 mark, signifying an excess of buyers over sellers. This meant that the coin itself was correcting itself at press time.

The RSI, however, remained above the 50 mark, indicating that the buying force was greater than the selling force. Dogecoin price was above the simple moving average (SMA) at 20, indicating that the buyers were in control of the price momentum in the market.

It was also above the 50-SMA (yellow) and 200-SMA (green) lines, indicating a bullish trend. The coin, however, formed a death cross where the 200-SMA line crossed the 20-SMA line. A death cross comes with a significant drop in value.

Dogecoin
Dogecoin represented buy signals on the 1-day chart | Source: DOGEUSD on TradingView

The meme-coin continued to show buy signals on the one-day chart. Moving Average Convergence Divergence, which indicates price momentum and trend reversal, represented green signal bars related to buy signals.

These green histograms were shrinking, indicating that now was probably not a good time to buy the asset. Resonating with the same are the Bollinger Bands which suggest volatility has widened, implying that the price would change significantly in the next trading session.

Featured image from UnSplash, charts from TradingView.com



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