Dogecoin [DOGE] has quite a ride this month. The digital asset defied market-wide momentum when it established its ATH near $0.5. However, the FOMO-fueled trend was cut short as it soon slid to the sixth position on the leaderboard trailing behind Cardano [ADA] and Binance Coin [BNB]. It has failed to resume an uptrend as bearish pressure engulfed the market.
After briefly halting the bearish onslaught, the meme coin continued its journey downward as it broke several support points along the way. This extended its weekly loss to 40%.
Dogecoin [DOGE] was being traded at $0.321 after a rise of 5.25% over the past 24-hours. The crypto-asset registered a market cap of $43.23 billion and a 24-hour trading volume of $4.21 billion.
Dogecoin [DOGE] Daily Price Chart:
Dogecoin’s downtrend does not seem to stop anytime soon. The moving averages have been aggressively heading upward. The 50 DMA [Pink] moved over the DOGE candle depicting a rising bearish pressure. The bulls have managed to sustain the price of the crypto-asset above the 100 DMA [Blue] so far.
But, the declining Volume did little help to push the price of the token that extended the asset to slope down marginally.
DOGE’s failure to extend its recovery evidenced that its supply far surpasses demand at higher levels.
The technicals of the meme coin depicted that bulls are in control. The red closing bars of the Awesome Oscillator indicated the prolonged bearish momentum in the price action of DOGE. The dotted markers of the Parabolic SAR aligned above the price candles also evidenced that the DOGE/USD pair is likely to face stiff resistance.
The RSI has dropped near 40-level further indicating that the bears have the upper hand. Hence, the sellers can potentially sink the price of Dogecoin below $0.248. A break below this level could bring another support level of 0.192 at play.
Contrary to this assumption, if the price undergoes a reversal, the bulls may challenge $0.44. Other resistance levels that await a breach are $0.56, and $0.69 respectively.