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DOGE Technical Analysis: Dogecoin Sellers Ready To Overtake Trend

Analytics

cryptoknowmics.com 01 August 2022 10:58, UTC
  
Reading time: ~2 m

The DOGE price shows a trendline breakout rally exceeding the 50-day SMA and challenging the $0.40 mark. Will buyers drive the prices to $0.50?

Key Technical Points:

  • The DOGE prices were down by 2.46% in the last 24 hours.
  • The price action the trendline breakout rally ready to reach the $0.40 mark.
  • The 24-hour trading volume of Dogecoin is $499 million, indicating a drop of 30%.

Past Performance of DOGE

As mentioned in our previous analysis, the DOGE prices from the support trendline of the symmetrical triangle give a bullish breakout. The breakout rally reaches $0.075 but takes a bearish toll due to the higher price rejection leading to a long wick daily candle. However, after a post-retest reversal, the prices took another bullish turnaround but failed once again to surpass $0.075, leading to a double top pattern. Moreover, the higher price rejection candles reflect an increase in selling pressure that may shortly lead downfall to $0.063. TradingView Chart Source - Tradingview

DOGE Technical Analysis

The DOGE prices can take bullish support at $0.063 to lead a sideways trend and avoid further downtrend continuation. However, traders need to keep an eye on the intraday trading volume despite an increase in buying pressure which is necessary to prevent a downtrend. As the sellers at $0.075 push the dogecoin prices below the 50-day SMA at $0.065 prepares to provide bullish support. The daily RSI slope maintains a sideways trend near the halfway line mark, projecting no bearish divergence in the double top pattern. Hence the technical indicator projects the possibility of a bullish turnaround from the supporting SMA. The MACD indicator shows a high amount of choppiness in the fast and slow lines maintaining a sideways trend near the zero line. Hence the technical indicator remains neutral for the time being. In a nutshell, the DOGE technical analysis showcases the display of a bearish bias. However, the technical indicators suggest that traders should wait for the price action confirmation.

Upcoming Trend

If the DOGE prices complete the double tap pattern, the downtrend possibility of a 20% drop to the psychological mark of $0.050 increases significantly. A sideways continuation is highly probable if the buyers maintain a sustained downfall at $0.063. Resistance Levels: $0.40 and $0.50 Support Levels: $0.37 and $0.33


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