Dogecoin Expected To Experience A Further 6% Decrease Prior to Initiating Recovery
12 Maio 2023 - 7:00PM
NEWSBTC
In recent weeks, Dogecoin has faced a downward trend in its price
momentum, largely due to the emergence of PEPE coin, which has
overshadowed its popularity. Over the past 24 hours, DOGE has shown
limited upward movement, with a mere 1% increase. The meme-coin has
experienced a significant decline in price, indicating a prevailing
bearish control. The technical outlook of Dogecoin showed that
bears are currently influencing its price. Both the demand and
accumulation have dipped, suggesting a decrease in buying activity.
Related Reading: Key Support Levels To Monitor As Ethereum Price
Slows Down Moreover, the rejection of Bitcoin at the $27,000 price
mark has hurt major altcoins, including Dogecoin, resulting in a
decline in their respective charts. For Dogecoin to maintain its
position above its immediate support level, it needs a recovery in
buying strength. If it fails to do so and loses its current support
level, it could experience another significant drop in value before
any signs of recovery. Additionally, the decline in the Dogecoin
market capitalization further indicates a fading buying strength at
the time of writing. Dogecoin Price Analysis: One-Day Chart As of
the time of writing, Dogecoin (DOGE) was trading at $0.070. The
meme-coin has been struggling to recover after facing rejection at
$0.076, with the bulls unable to gain momentum. The current
overhead resistance for DOGE is $0.073. If this level is breached,
it could propel the meme-coin to $0.078. However, if the price
falls from its current level, it will likely reach $0.068 and
potentially drop further to $0.066, resulting in a nearly 6%
decline in value. The trading volume of DOGE in the last session
indicated a red signal, indicating mounting selling pressure.
Technical Analysis Throughout the majority of the month, the demand
for the meme-coin remained low. This was evident from the Relative
Strength Index (RSI) staying below the 40-mark and nearly reaching
the 30-mark, indicating oversold conditions. Additionally, the
asset’s price consistently traded below the 20-Simple Moving
Average line, suggesting that sellers were the driving force behind
the market’s price momentum. Throughout this month, DOGE has lacked
positive demand, and its chart displays sell signals. The Moving
Average Convergence Divergence (MACD), which indicates price
momentum and reversals, formed red histograms below the half-line.
Related Reading: Bitcoin Plunges Below $27,000, Which Holder Groups
Are Selling? This suggests a signal to sell, indicating a potential
decline in price in the upcoming trading sessions. The Bollinger
Bands indicator has widened regarding price volatility and
fluctuation, indicating that DOGE may experience price fluctuations
in the next trading session. For Dogecoin to recover shortly, it
heavily relies on broader market strength. Featured Image From
UnSplash, Charts From TradingView.com
Dogecoin (COIN:DOGEUSD)
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Dogecoin (COIN:DOGEUSD)
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