Dogecoin Price Movement Thwarted By Sellers, What’s Next On Chart?

Dogecoin’s price fell sharply in the last week. In the same time span, DOGE lost 15%. DOGE declined by 0.7% over the last 24 hour. According to the current price action, there is a limit on movement.

Dogecoin might drop below the support level if its price keeps consolidating. The resistance line might be crossed if bulls raise the altcoin price higher than it is currently at.

Since broad market weakness intervened, many altcoins fell on their respective charts. Dogecoin’s technical outlook continues to show that the bulls have the potential of overtaking bears if buyers cooperate.

The lack of buyers will keep bulls from overcoming overhead resistance. Dogecoin prices had risen by 4% in recent months, but the bulls were unable to sustain this. The lower prices of the coin were also indicating that there was a demand.

Dogecoin Analysis: Four-Hour Chart

Dogecoin Price
Dogecoin traded at $0.068 per hour on the tradingview four-hour chart.| Source: DOGEUSD on TradingView

DOGE was currently trading at $0.068 when this article was written. Sellers pulled down the price and it was defeated recently at $0.071. Due to the demand at lower levels for DOGE, this was a result. At $0.070, the overhead resistance of the coin was attained.

The next resistance for Dogecoin would be $0.072. At $0.056, the nearest support level for meme-coin is expected. An increase in selling pressure was reflected in a fall in trading volume for the meme-coin. Buyers must re-enter to allow the coin to overcome resistance.

Technical Analysis

Dogecoin Price
Source: DOGEUSD on TradingView| Source: DOGEUSD on TradingView

DOGE noted that there was a decline in buyers and sellers, which has led to them leaving the market. The chart’s other indicators had begun to improve, so this could just be a passing observation. Relative Strength Index moved below its half-line and proved that sellers are in control.

Dogecoin prices were higher than the 20 SMA line. This indicates that buyers are driving price momentum. If buyers take note of the market’s price action, then the price ceiling can be reached in the following trading session.

Dogecoin Price
Dogecoin signaled buy on the four-hour chart. Source: DOGEUSD at TradingView| Source: DOGEUSD on TradingView

It was portrayed as a great opportunity for buyers to buy. Moving Average Convergence Divergence depicts price momentum and the changes within that. MACD created green signal bars following a bullish crossover. This is linked to a sell signal.

Chaikin Money Flow shows the capital inflows or outflows to a particular coin over a period. CMF was at the top of the line, meaning that capital outflows were high. The indicator showed a slight decline, but capital inflows outpaced outflows.

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