Since descending to a price below $0.19 in December 2021, Dogecoin (DOGE) has been on a relentless downward trend. It was in June of 2022 when the dog-themed token reached its all-time low. Meanwhile, purchasers have had difficulty regaining control of key support areas.
Dogecoin’s previous bullish run saw its breakout fixate a position beyond the 10-month trend-line support. The meme coin retested its trend-line footing after experiencing a fresh wave of negative pressure from the POC.
DOGE’s downward trend may continue, but it is possible that it will stage a short-term recovery. Dogecoin has fallen more than 3% in the last 24 hours, trading at $0.0618 at the time this blog post was written.
Daily Timeline for Dogecoin
The subsequent reversal pulled Dogecoin below its 20 Exponential Moving Average and the 50EMA as negative power appeared to replenish around the $0.08 mark. There was a struggle going on between sellers and buyers in the Point of Control area, but the bearish engulfing candle indicated that the market was headed in a bearish direction.
Buyers may attempt to stop the current bleeding if the DOGE price breaks above its long-term trend line. The bulls could use a rebound off the level to push the price up to $0.068 before facing probable reversals.
However, if Dogecoin keeps falling below $0.061, it could lead to further declines in DOGE. Before a slow period sets in, sellers may try to guarantee a move to $0.056.
Reasoning
The Relative Strength Index (RSI) dropped below the 43 support level, suggesting extreme bearish dominance. Short-term sales attempts would be bolstered by behavior below this level. The general bearish posture was confirmed by the AO (Awesome Oscillator) falling below the zero region.
To my surprise, the Volume Oscillator (VO) continued its downward trend during the most recent correction. That proved to be a modest, insignificant bearish action. The ADX showed that DOGE was proceeding in a downward trend.
One Last Thing
In this article, the value of dogecoin fluctuated at a pivotal moment. If buyers maintain support at the 10-month trend-line, the meme currency could see short-term gains.
While sellers continued to choose medium to long-term projects, the bearish cross on the 20-50 Exponential Moving Average underlined the negative strength. All of the aforementioned are valid objectives. Last but not least, Dogecoin has a strong relationship to Bitcoin. In light of this, Dogecoin enthusiasts can profitably observe Bitcoin’s movement.
