DOGE Bulls Retreat at Resistance, Oversold Signals Hint Reversal

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DOGE Bulls Retreat at Resistance, Oversold Signals Hint Reversal
  • DOGE faces resistance at $0.06209, signaling a potential bearish trend.
  • Bollinger bands indicate short-term consolidation with lower volatility.
  • Stochastic RSI suggests DOGE is oversold, hinting at a possible price reversal.

Resistance at $0.06209 wiped off the positive momentum in Dogecoin (DOGE) during the last 24 hours. As a result, DOGE bears drove the price down to an intraday low of $0.06064 until buyers stepped in and drove it back toward its price of $0.06081 at press time.

If DOGE breaks below the $0.06064 support level, the next significant barrier is at the $0.05950 level. However, a sustained buying interest and a subsequent break over the $0.06209 barrier might signal a continuation of the bullish trend towards $0.06300 and $0.06500.

The DOGE’s market capitalization fell 0.43% to $8.59 billion, while its 24-hour trading volume plunged 23.80% to $209.51 million. This decline in market capitalization and trading volume indicates waning investor interest and activity in DOGE, which might lead to a fall in price if the trend persists.

DOGE/USD 24-hour price chart (source: CoinMarketCap)

The linear movement of the Bollinger bands on the 2-hour DOGE/USD price chart suggests more short-term range-bound movement in the DOGE price. Indicating a possible period of consolidation in the DOGE price, the upper and lower bands intersect around $0.0619 and $0.0599, respectively. This movement suggests that traders are waiting for better clarification on market conditions before making major movements, resulting in lower volatility.

However, the negative pressure on DOGE may diminish as the price action forms a green candlestick and rises above the middle band. As a result, this might indicate a change in traders’ mood, with buying pressure rising to counteract selling.

In addition, the 25.61 reading on the stochastic RSI indicates that DOGE is oversold. This level increases the likelihood of a reversal, implying that selling pressure may wane and buyers may have stepped in to propel the price upward.

DOGE/USD price chart (source: TradingView)

However, the Chaikin Money Flow (CMF) rating of -0.21 and trending downwards shows that there is still some selling pressure in the market. This level suggests that the potential change in mood may not be sufficient to justify a substantial rise in the price of DOGE. If the CMF continues to slip into negative territory, it might imply that selling pressure will continue, perhaps leading to more price drops for DOGE.

An upward-sloping Relative Strength Index (RSI) rating of 46.77 for DOGE indicates that buyers are active in the market. However, it still shows that selling pressure is more than purchasing pressure since it is below the 50 level. If the RSI crosses above its signal line and the 50 level, it may indicate that buying pressure is increasing for DOGE and that the current downward trend is about to end.

DOGE/USD price chart (source: TradingView)

In conclusion, DOGE faces critical support at $0.06064, but signs of oversold conditions and potential buyer interest may signal a turnaround.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.