On May 8th, the Dogecoin price experienced a significant sell-off, resulting in a long red candle in the daily chart. This bearish push altered the previous price trend, forcing it to move sideways and remain within the range of the May 8th candle. With increasing uncertainty in the crypto market, the consolidation phase extended for several days, maintaining the credibility of this range and potentially impacting Dogecoin’s near-future price.
The narrow price range between $0.0771 and $0.0698 could be marked as a no trading zone, with a breakout required to initiate a sustained rally. At press time, the Dogecoin price is trading at $0.0729, posting a 1.08% intraday gain. The daily chart displays several short-body candles, indicating that no clear dominant force is present in the market. Whether this memecoin will extend its sideways trend for additional trading days depends on the market’s decisiveness.
The May 8th daily candle’s high ($0.0771) and low ($0.0698) serve as essential resistance and support levels, respectively, creating a narrow trading range. Traders might want to wait for a breakout from one of those levels to determine the potential trend in the Dogecoin price. A breakout above the $0.077 resistance could increase buying pressure, driving the price up by 5% to reach $0.0815, followed by $0.09. However, a breakdown below the $0.0698 support could extend the current downward trend towards the $0.06 mark.
Several indicators suggest where the Dogecoin price might be heading. The Super Trend’s red area projection reflects a bearish market trend, implying a higher possibility of a downside breakdown. Meanwhile, the Vortex Indicator shows the VI- (red) and VI+ (blue) slope narrowing close after a bearish crossover, indicating that selling momentum is weakening.
As long as the range between $0.0771 and $0.0698 remains intact, Dogecoin’s price will continue its sideways movement. For a potential drop to $0.06, the coin’s price needs to break down below $0.0698 with a daily candle closing, offering sellers additional resistance to pressure buyers.
It’s essential to conduct thorough market research before investing in cryptocurrencies, as the presented content may include personal opinions and is subject to market conditions. Neither the author nor the publication holds any responsibility for personal financial losses.
Source: Coingape
