After displaying bullish momentum, Dogecoin’s chart slightly fell. Today, the majority of market mover were in red. DOGE is currently trading in support at $0.06, although DOGE traded slightly above $0.07 a while ago.
According to technical analysis, the coins still have a possibility of bulls recovering levels over $0.07. Bitcoin also retraced in the past 24 hours, and was valued at $22,000 Many altcoins have the exact same price path.
Although the buying power of the market has diminished, the number of buyers was still higher than the sellers as press time. Dogecoin’s current price trend will continue and soon selling power will replace buying strength.
DOGE demonstrated a relief rally. There is always a possibility that DOGE will retrace before moving again on the upside. Dogecoin will likely regain higher levels but buying power remains vital at this point for the meme-coin.
Dogecoin Analysis: Four-hour Chart
DOGE traded at $0.0686 at the time this article was written. It has maintained its $0.0600 support level. Overhead resistance of the coin was at $0.0726. It could see resistance above $0.0781.
The coin could trade at the $0.0840 level if it gains momentum. Dogecoin could move further southward, pushing it to $0.0575. This would then push the coin below its support level at $0.0500. Dogecoin trading levels fell which means that there was a decrease in buying power, which can be a sign of falling bullishness.
Technical Analysis
DOGE observed a dramatic decline in buyers over the last four hours. The momentum was not maintained by buyers despite Dogecoin’s visit to the overbought region. Selling pressure can be made stronger by a slight decrease in buying power.
Relative Strength Index fell on the chart, and it was very close to the halfway line. This indicated that buying pressure was falling.
The price of Dogecoin had a slight dip below the 20 SMA, which indicated that sellers might soon be driving the price momentum. The meme-coin however was above the 50-SMA and 200-SMA which indicated that bullish momentum didn’t completely fade out.
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There was a change in the price action of meme-coin on the 4 hour chart. The Moving Average Convergence Divergence shows price momentum, and reverses in the same. MACD showed a bearish crossover, and the chart displayed red histograms.
This reading indicates a sell signal and a change in current price direction. Directional Movement Index is also used to indicate price movement.
DMI was negative, the line between the –DI and +DI lines was higher than the +DI. Average Directional Index Red (Red) fell below the 40 mark, signalling that the current trend in price was losing strength at press time.
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Featured image by UnSplash. Chart from TradingView.com