- Dogecoin tests critical support level, hinting at a possible short-term bounce if buyers step in.
- Technical indicators show DOGE forming a classic Cup and Handle, signaling potential recovery if resistance breaks.
- Recent declines reflect bearish momentum with RSI and MACD indicating seller dominance and weak buying pressure.
Dogecoin has just pulled back due to its failure to maintain its upward movement. Dogecoin is seen testing an important level of support, hinting at a possible short-term bounce. Technically, if the current level of support holds, Dogecoin may bounce back to the mid-levels.
At press time, DOGE is trading at $0.1365 at the time of writing. The cryptocurrency recorded a 24-hour trading volume of $2.46 billion and a market capitalization of $20.82 billion, reflecting an 8.53% drop over the last 24 hours. This decline comes after the coin struggled to maintain its earlier upward momentum.
Dogecoin Approaches Critical Support Level
Pointing out notable movements in the Dogecoin markets, crypto analyst BitGuru indicated that Dogecoin has been moving lower as it has failed to maintain its bullish setup. Dogecoin has now reached a strong support area, which is expected to be an important area for potential buyers to step in. Indicators at the start are expected to pull back the markets towards the mid-price range.
Dogecoin Forms Cup Handle Pattern
Adding technical insight, Trader Tardigrade observed that Dogecoin is pursuing the classic Cup and Handle pattern, in which it is presently in the process of establishing the handle phase.
Historically, this pattern has indicated that if the handle is completed and the coin can move past the resistance level, it may be just what Dogecoin needs to give it a kickstart in the short run.
Although it has dropped recently, the supporting zone is of interest for investors looking for potential points of entry. It is thought that it will be very important to pay attention to DOGE movements in this zone in order to accurately forecast what happens next in terms of its price action.
DOGE has remained among the top cryptos that are closely watched and traded, and its movements in the markets are still monitored closely for investment opportunities in both the short and long run.
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DOGE Slips Into Weak Zone
The RSI is currently at 37.59, and this indicates that momentum is cooling down and sellers are gaining strength. The MA Ribbon is lying on top of the stock, and the levels are 0.20863, 0.21728, 0.19076, and 0.13672, which indicates that it is strongly bearish. Also, since DOGE is at 0.13699, it can be seen that the stock is testing lower levels of support.
Meanwhile, the MACD indicates weakness too, as it is at -0.01036, and the signal line is at -0.01785. Thus, the momentum remains negative. The histogram is at -0.00749, further contributing to the downward pressure. Overall, it is evident that the coin is struggling to build any bottoming action yet.
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