SNEAK PEEK
- DOGE faces resistance at $0.1026, with support at $0.09356.
- Bollinger bands suggest a potential trend reversal for DOGE.
- MFI indicates DOGE may be overbought, while RSI shows short-term downside risk.
Despite a robust bullish rise that recently drove the Dogecoin (DOGE) price to a 90-day high of $0.1026, resistance proved challenging to breach. After the bulls’ enthusiasm faded, the bears took control of the market and sunk the price to a 24-hour low of $0.09356, where support was established. A drop of 0.73% brought the price to $0.09719, indicating that bears were still in control as of this writing.
The market capitalization and 24-hour trading volume increased by 0.96% and 49.81%, respectively, to $13,487,843,052 and $2,348,543,617, resulting from profit-taking. This action suggests that investors are being cautious and taking profits, which could lead to additional depreciation in the short term.
If the bears manage to breach the $0.09356 support level, the following support levels to watch are $0.08923 and $0.08567, respectively. If, however, buyers can push the price over the $0.1026 resistance level, then buyers should keep an eye on the $0.1069 and $0.1104 levels.
On the 4-hour price chart, Bollinger bands are rising and bulging, indicating that the DOGE bearish momentum is fading and a trend reversal is possible.
This optimism stems from the fact that the upper band ($0.1070) is beginning to flatten out, indicating that the price has reached a resistance level, while the bottom band (0.0712) is also rising, showing that the support level is strengthening.
However, because the Fisher transform is falling below its signal line with a value of 0.67, the bullish reversal may not yet be verified, and traders should wait for additional confirmation before taking any long positions. This crossover indicates that momentum is still bearish, and there is a significant downside risk if the price breaks below the lower Bollinger band.
Since the Money Flow Index (MFI) on the DOGE price chart is at 82.60, the bearish momentum may diminish, and a positive trend may form. This expectation stems from the fact the MFI monitors buying and selling pressure, and a score of 80 or more often signals an overbought market, which could lead to a price reversal.
The Rate of Change value of 0.83 indicates that the bear rule in DOGE is losing pace” and that a trend reversal is possible in the near future.
However, with a value of 65.37, the Relative Strength Index (RSI) recently made a bearish crossover by dropping below its signal line. This movement shows that the price of DOGE may face short-term downward pressure before any potential reversal occurs.
As Dogecoin faces resistance, cautious investors take profits, while technical indicators suggest a possible trend reversal on the horizon.
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.
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- Source: https://investorbites.com/dogecoin-price-analysis-5-4/
