Dogecoin (DOGE) has seen increased selling, as DOGE did not manage to sustain its key resistance. This indicates further indecision regarding the direction of Dogecoin in the short term, as the cryptocurrency has been trading in a tight range.
At the time of writing, Dogecoin is trading at $0.09248, with a 24-hour trading volume of $3.73 billion and a market capitalization of $15.74 billion, according to CoinMarketCap data. The price has slipped 2.62% over the last 24 hours, reflecting persistent selling pressure as investors monitor nearby support levels.
Source: CoinMarketCap
Dogecoin Faces Growing Bearish Pressure
A popular crypto analyst, BitGuru, pointed out that DOGE has lost upward momentum after failing to stay above the recent resistance level. The crypto asset’s price structure indicates that it is likely to continue losing more on its price chart if support levels are not maintained.
Source: X
BitGuru also pointed out that in case DOGE goes below $0.092, it is possible that it could reach the level of $0.090, with the area of $0.088 being a demand area where buyers would try to re-enter.
However, BitGuru also warned that if the demand zone does not hold, the market could fall further, which could increase the chances of a stronger sell-off in the short term as the bearish pressure mounts.
Dogecoin Struggles Below Key Moving Averages
Moreover, the technical indicators also confirm that Dogecoin is still trying to recover with more momentum. The Relative Strength Index (RSI), which is used to measure the momentum of the price movements, is currently at 45.87, which is just above the signal line at 43.37.
The current price, which is trading at approximately $0.09248, is trading just below the 20-day moving average, which is at approximately $0.09398, and therefore, short-term resistance remains active and continues to cap upside attempts.
Source: TradingView
Looking at the technical indicator still looks rather weak. This is because, currently, the 50-day MA is at $0.10185, the 100-day MA is at $0.11893, and the 200-day MA is at $0.16274. This indicates that the trend for Dogecoin is still pointing downwards.
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Dogecoin Momentum Hints Potential Reversal
Momentum indicators point to a possible change in trend in the case of increased buying activity. The MACD is 0.00057, and the signal line is -0.00295. The MACD Histogram is still negative at -0.00352. Buying strength is not rising significantly. Momentum is rising, but more confirmation is required before a definite upward movement can be seen.
For now, the $0.092 is an important support level. If it holds above support levels, Dogecoin may consolidate or even stabilize. If it breaks below the $0.088 demand zone support, it may lead to a correction.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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