Dogecoin is currently the most popular meme-coin in terms of market capitalisation. This has been going on for nearly a week. In the 24 hours since the announcement, prices of Dogecoin have appeared bearish and remain negative. Dogecoin’s buying power has fallen by 4.9% over the last week.
Since January’s beginning, bulls have not been seen on the charts. Dogecoin will aim to reach its closest support level if the price action continues. Market participants have been fleeing the market and the bears have now taken over.
Dogecoin is down 82% from $0.73, which was its high point last year. Not just investors, the Federal Open Market Committee’s meeting related to hiking interest rates has also kept investors on their toes.
Dogecoin Analysis: Four-hour Chart
Dogecoin’s price was $0.131 as of the writing. Meme-coin had barely fallen below the $0.131 support level in the month that the coin was trading. This has ensured that the coin’s prices have held well above this support line. Dogecoin’s price action has been quite volatile over the last few weeks.
Dogecoin’s price recovery has been short-lived because it was unable to maintain its momentum right after it soared during the month. Two times, the meme-coin’s charts showed bearish engulfing candlessticks. Prices have fallen every day since then.
Sell-off of the asset doesn’t seem unnatural as it is quite a common scenario after bearish engulfing candlesticks. It is possible for prices to continue falling below the current level. Support for the coin was at $0.129 at first, then $0.118 at second.
Dogecoin was trading at the $0.118 level last March. If the bulls return, however, the coin may reach $0.14.
Dogecoin Displays A Falling Wedge Pattern; Here’s What It Means| Dogecoin Displays A Falling Wedge Pattern; Here’s What It Means
Technical Analysis
Over the previous trading sessions, the bulls tried to find their own way back as the coin attempted trade above the 20 SMA line. A market recovery is also possible by trading above the 20 SMA line.
These increased demand could lead to prices exceeding the 20-SMA. However, buyers outnumbered sellers in the market at press time. A small increase in the Relative Strength Index was also observed. This corresponds to an increased buyer pool, but buying power remained low at the time.
MACD and Chaikin Money Flow have different views of the meme coin. Both indicators indicated that the reading was positive at the time.
MACD, the indicator that determines market momentum, experienced a bullish crossover. It displayed green histograms indicating that prices are turning bullish. The indicator may be displaying signals from past trading sessions in which DOGE failed to recover, although it is too early to pinpoint the cause.
Chaikin Money flow indicates capital outflows and inflows. This indicator is visible above the line, which indicates that capital inflows are increasing.
DOGE’s short-term price action has been bearish. However, investors may drive bears out of the market in the next trading session.
Similar Reading: Bitcoin gives bullish clues. Will the FED meeting get in the way?| Bitcoin Gives Bullish Clues, Will The FED Meeting Get In The Way?
Featured Image from UnSplash. Chart by TradingView.com