The crypto market is experiencing increased volatility, with Dogecoin’s price taking a detour from its downward trend to move sideways between the $0.075 and $0.069 levels. This narrow daily range has neither the bulls nor the bears dominant, yet presents potential trading opportunities for the popular “meme coin.” As the market recovers, memecoins are showing selective growth, with some emerging as high fliers.
Currently, the Dogecoin price is consolidating, likely before resuming its downward trajectory. A breakout in either direction from the current daily range pattern will provide a reliable indication for discerning the potential trend. At press time, Dogecoin’s price stood at $0.071, with an intraday loss of 1.62%. Without any decisive initiation from buyers or sellers, the coin price may continue to consolidate for a few more trading days.
Given that the previous trend for Dogecoin was bearish, the likelihood of the price continuing on that path is considerable. A breakdown below $0.0692 accompanied by a daily candle closing could revive the exhausted bearish momentum, potentially resulting in a prolonged downfall. This potential drop might send the prices tumbling 15-18% to reach the lower trendline of the falling channel pattern.
Conversely, a breakout above $0.0755 could offer buyers a promising opportunity to push Dogecoin’s market value higher. If the coin’s value drops below the $0.069 level, it would favor sellers and end the ongoing consolidation phase. A successful flip below this level could grant sellers additional resistance, enabling them to pressure the price downwards. Subsequently, the coin’s value could plummet to the $0.0628 support level, eventually reaching the $0.0568 mark.
Despite the coin’s sideways price action, the Moving Average Convergence Divergence (MACD) and signal lines are rising, suggesting increasing buying momentum and a significant possibility that Dogecoin will break through its overhead resistance. However, the Exponential Moving Average (EMA) paints a different picture, with the coin’s price remaining below daily EMAs (20, 50, 100, and 200), indicating that traders will encounter multiple resistance levels on the upside.
It is crucial to note that this content contains the personal opinions of the author and is subject to market conditions. Always conduct thorough research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any personal financial loss.
Source: Coingape
