Dogecoin’s price has been optimistic over the last week. In the seven previous days, Dogecoin has seen double-digit gains. The cryptocurrency’s value rose by almost 20% over that time. It has encountered rigid resistance at $0.07 and, if the price is unchanged, could drop to $0.05.
As the currency tried to climb steadily over the last few days, the bulls tried to recover. DOGE’s market value has fallen in the short-term. Dogecoin has declined by 4% in the past 24 hours.
As the coin moved up by 20%, the technical outlook has been bullish. Although buying strength has recovered in the past week, the meme-coin showed some bearishness for a shorter period of time. Currently, sellers are greater.
Although the DOGE four-hour chart showed negative price movements, it has shown a bullish trend reversal. Today, the global cryptocurrency market is valued at $979 billion. 2.9%Fall in the past 24 hours
Dogecoin Analysis: A One-Day Chart
DOGE traded at $0.072 per hour on the one-hour chart. For a few weeks, the coin has been at this resistance level. Dogecoin’s current price will drop to $0.060 if it is not maintained above that level. Otherwise, Dogecoin can trade at $0.047.
The coin’s overhead resistance was $0.08, and $0.09. The coin formed a bullish reverse pattern over a longer period of time.
This pattern is known as the BARR Bottom. This pattern can also be called a bump and run bottom pattern.
This pattern indicates a prolonged trend reversal during a bear market. It is divided into three phases, the Lead-In phase and the Bump phase. Finally, the Run phase.
Dogecoin is currently in the bump phase, which will be followed immediately by the run phase. This will reverse the bearish price action.
This could lead to the coin reaching the $0.090 level and the $0.011 mark. Dogecoin volume traded decreased, indicating that there has been a decline in buying power.
Technical Analysis
DOGE was moving towards bearish pricing action. The four-hour chart even showed a rising wedge pattern.
Relative Strength Index showed a decline, which indicated that the buyers are leaving. The bearish price signal is triggered by a rising wedge pattern.
DOGE could show some bearishness during the trading session. Over a longer time period, DOGE could rebound.
According to the 20 SMA indicator, the coin was higher than the 20 SMA line. This showed that, despite decreasing buying pressures, buyers still drove the price momentum.
Similar Reading| TA: Ethereum Bulls In Control, Why ETH Could Clear $1,300
According to the technical outlook shown on the chart for four hours, the coin received a sell signal. The Awesome Oscillator, which shows price momentum, gave a red signal.
The chart’s red signal bars are tied to sell signals. Parabolic SAR is a sign of the current trend as well as trend reversals.
A sign of bearishness in the chart is the presence of dots beneath the candlesticks. The coin could dip in the first trading session, then rebound to its previous level.
Cardano Formed This Pattern On Its Chart, Where Is The Coin Headed?| Cardano Formed This Pattern On Its Chart, Where Is The Coin Headed?
Featured image by Unsplash.com. Chart created by TradingView.com