Is DOGE Losing Momentum? Can It Rally Before Dropping Below $0.10?

This article discusses the current state of Dogecoin (DOGE) on the cryptocurrency market, its recent price performance, and the potential for a price rebound. It details the trading ranges, market cap, volume, and various technical indicators that suggest where DOGE might be headed next.

Key Takeaways

DOGE was trading at $0.1631, with a market cap of $24.77 billion and a significant drop in daily trading volume by 56.5%.
There is a potential for a price rebound as a buy signal has been triggered on the DOGE chart, despite ongoing bearish trends.
If bearish pressures intensify, DOGE could slide towards the support level of $0.1621.
On the flip side, bullish trends could see DOGE breaking resistance levels above $0.1641.

Is DOGE Losing Momentum? Can It Rally Before Dropping Below $0.10?

Current Trading Situation for DOGE

The meme coin DOGE has fluctuated between its highest and lowest trading ranges, recorded at $0.1685 and $0.1615, respectively. As of the latest update, the price stood at $0.1631, with a market capitalization of $24.77 billion. In addition, the daily trading volume has plummeted by 56.5%, amounting to $1.93 billion. According to Coinglass, Dogecoin has experienced $4.25 million in liquidations within the past 24 hours.

An analyst's report highlights that the TD Sequential indicator on the DOGE chart has sent out a buy signal, indicating that the selling pressure might be winding down. This signal appears after a considerable price drop, suggesting that DOGE may have hit a local bottom and could be ready for a potential rebound—assuming buyers begin to show interest. A strong close above resistance would enhance the bullish outlook.

What's Next for DOGE's Price?

If bearish sentiments continue to weigh heavily, DOGE could face a quick decline toward the support level at $0.1621. Should the correction extend further down, it may create a death cross leading to prices falling below $0.1610. Conversely, if DOGE manages a recovery, it could rise immediately to encounter resistance at $0.1641. With substantial bullish momentum, a golden cross might develop, potentially pushing DOGE above $0.1651.

DOGE chart (Source: TradingView)

The Moving Average Convergence Divergence (MACD) line and the signal line for DOGE are currently positioned below the zero line, indicating an overall bearish trend. Despite short-term crossovers, the long-term trend continues to seem weak. Additionally, the Chaikin Money Flow (CMF) indicator shows a reading of 0.14, suggesting moderate buying pressure in the market. While this indicates more investment is entering DOGE than leaving, the strength of this movement is not very strong.

Furthermore, the Bull Bear Power (BBP) for DOGE is at -0.00509, demonstrating slight bearish dominance in the market, although the figure is marginal indicating weak bearish momentum. The daily Relative Strength Index (RSI) of DOGE stands at 38.39, reinforcing that it remains within the bearish territory. Importantly, the selling pressure is greater than the buying pressure; however, it is approaching oversold conditions.

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