Dogecoin (DOGE) is currently stuck between the $0.05 and $0.063 supports. In this analysis, we will consider two possible scenarios. The main scenario facing a positive consolidation, the relative strength index suggests the beginning of a bullish momentum. Therefore, if the index holds, it might breach the $0.063 barrier. The other scenario is when the index weakens and due to market uncertainty, DOGE might breach the lower barrier of $0.05.
Let’s establish three key points to facilitate the analysis:
- The breakout of $0.063 could increase the price of DOGE by 12% to 18%.
- The volume of transactions has decreased
- EMA Shows Dynamic Resistance
In response to the uncertainty, DOGE buyers temporarily halted their pressure to hold $0.075. For nearly a month, the currency hovered between $0.0935 and $0.075 from May 11 to June 10.
The massive sell-off in the second week of June caused the price of DOGE to fall by more than 32%. The price has held between $0.063 and $0.05 over the past week and is flirting with breaking resistance and recovering ground amid the current crisis in the cryptocurrency market.
This current price level should provide interested traders and users with optimal entry support that will allow them to generate profits quickly. If, of course, the breakup scenario comes true.
Similarly, the trading volume has decreased by around 31.5% in the past seven days.
Conclusion of technical analysis on DOGE
Last month, DOGE traded almost entirely between the middle band and the lower band of the Bollinger Band indicators. This shows aggressive market selling.
The price of Dogecoin, however, is above the lower band, which if held, may push DOGE into a trend reversal.
- Other implications
Also, for a more accurate analysis of DOGE, we cannot ignore the most important cryptocurrency, Bitcoin. The recent market situation is not at all favorable for the leading cryptocurrency.
- The correlation of all cryptocurrencies like DOGE with Bitcoin allows us to have some support when analyzing the price of DOGE.
- It is possible that the “cryptowinter” continues and that the price of bitcoin continues to affect other cryptocurrencies. This could happen even if bitcoin slows its fall.
To display Hide the table of contents