Given the current bearish pattern in the cryptocurrency market, this article brings a careful evaluation of Dogecoin’s price shift. After reaching an all-time high of $0.0838, Dogecoin has found itself in a corrective phase, a change in its price trend. Instead of surging further, the popular memecoin has experienced a V-top reversal. This has led to a measured loss of 24% in just two weeks. Consequently, at present, the cryptocurrency trades at $0.0738. Without any substantial indicators pointing towards a reversal of this downward trend, Dogecoin may foresee further depreciation in its value.
Dogecoin’s Daily Chart: Key Points of Consideration
- With the Dogecoin’s price downturn, there could be a high demand pressure point at $0.056.
- A decisive crossover between the 50-day and 100-day Exponential Moving Average (EMA), namely a bullish bearish crossover, might invite more sellers in the market.
- The 24-hour trading volume for Dogecoin stands at $263.5 Million. This demonstrates a significant loss, approximately 65%.
Image Source – Tradingview
Familiar with the financial marketplace, a V-top reversal is characterized by dominant selling pressure. Dogecoin’s recent downturn, underpinned by increasing trade volume, lends more credence to sellers’ determination to chase lower prices.
At the moment, the DOGE price is wavering just above the local support level of $0.056, observing demand pressure due to the lowered prices. Post a severe drop, the coin’s price may display brief consolidation to regain the lost selling momentum.
Assuming the market trend further leans towards the bearish side, Dogecoin sellers might endeavor to breach the last swing low of $0.0533. Such a breakdown would testify a continuation of the ongoing downturn, potentially forcing the price to revert to $0.049, and subsequently to as low as $0.041.
Probability of Dogecoin Rising Back to its Peak: $0.0838
Welcome a day gone by, On August 17th, Dogecoin created a lengthy bearish candle in response to a dip in Bitcoin’s price. If Dogecoin can manage to remain above $0.0533, the buyers would need to overcome the high point of the said candle, which is $0.838. A breakout at this point will give the buyers an impetus, setting them up for a 32% upswing and motivating them to challenge the $0.0838 mark.
- Exponential Moving Average (EMA): When a coin’s trading price stands below the daily EMAs (20, 50, 100, and 200), it signifies the long-term trend to be bearish. Currently, Dogecoin’s price aligns with this scenario.
- Moving Average Convergence Divergence (MACD): A negative state of crossover between the MACD(blue) and signal(orange) lines underscores the persisting selling pressure during the correction phase.