Dogecoin Falls: DOGE price continues to maintain rising channel pattern

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Dogecoin (DOGE) Price Analysis – July 9

During last week trading, the price of Dogecoin sharply went up by 30% after a few hours of its listing on Binance Exchange, causing the market to spike to $0.004622 mark from a monthly low of $0.002788. However, the market has significantly rolled back to a trading price of $0.003509 as of the time of writing (after going down by 2.65% in the last 24 hours). By CoinMarketCap ranking, DOGE is currently positioned as the 29th cryptocurrency with a market cap of $428.5 million.

Dogecoin Daily Price Analysis – Bearish

Key resistance levels: $0.003866, $0.0042, $0.0045

Key support levels: $0.003203, $0.003008, $0.002807

Following the announcement of Dogecoin listing on the most traded Exchange, Binance, last week, the cryptocurrency saw an insane price gain of about 30% which took trading to as high as $0.004622 before closing at $0.003827 on HITBTC Exchange.

While trading in a rising channel pattern, yesterday, the price found support on the daily 50 moving average, marked orange on the chart which has now seen a bounce to around 0.0034 levels.

DOGE/USD Daily Price Chart – July 9

If the bulls can power the market, we can expect a gear up to the $0.003866, $0.0042 and $0.0045 levels to play out, retesting the channel resistance. A break above the channel could fuel a bull-run.

We can see that the last four days trading volume is becoming low on the daily chart. If we continue to see a lower trading volume, the price of Dogecoin will drop to close-by supports at $0.003203, $0.003008, and $0.002807 to test the channel support before rebounding. A break down could lead to a severe bearish scenario.

Price sharply dropped after testing the RSI 70 level – a severe resistance level for the market. Similarly, the daily 100 moving average (marked in pink color) has acted as reliable support for the market.

Dogecoin 4-Hour Price Analysis – Bearish

As we can see on the 4-hour chart, the price action is still maintaining a rising channel formation as selling pressure currently bolster on the crucial 50-day moving average, supported alongside with the medium-term 100-day moving average.

DOGE/USD 4H Price Chart – July 9

In fact, the volume of the price chart is now dropping. If the moving averages fail to hold the selling pressure, we can expect immediate support at the $0.0032 – $0.0031 zone. While the market is in the middle of consolidation at the break level, a bullish play could send DOGE price to $0.0037, $0.0039, $0.0041, and $0.0043 resistance.

The RSI for Dogecoin is now trending sideways with an indecisive market, now testing the 50 level. For now, the channel formation will remain diagonal support and resistance for the market until a surge in volatility occurs.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Michael Fasogbon: Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.