Dogecoin price is under heavy selling pressure amid the weakening trend of the cryptocurrency market. The digital currency has found itself in an important support level due to its inability to sustain previous gains, making it vulnerable to more losses. Technical indications and market action indicate that the momentum is in favor of sellers.
At the time of writing, DOGE is trading at $0.08194, reflecting a sharp 7.47% drop over the last 24 hours. Despite steady activity in the market, with a 24-hour trading volume of $2.28 billion and a market capitalization of $14.05 billion, overall sentiment has weakened as sellers maintain control of recent price action.
Source: CoinMarketCap
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Dogecoin Price Hits Key Support as Recovery Hopes Build
A prominent crypto analyst, Ali Martinez, pointed out that the price of Dogecoin had already made it to the target he was looking for, which was at $0.0883, before starting to trend downwards again. He pointed out that the Doge is currently being tested on the lower edge of its price range.
Source: Ali Martinez’s X Post
According to his analysis, a recovery in the price of Dogecoin to $0.1019 is likely to be attempted if this support level holds. However, a break below this level would put the focus on another level of support at $0.067.
DOGE Turns Bearish as Momentum Weakens
There are also signs of weakness in the Dogecoin price according to the most important technical indicators used, which imply that bearish momentum is prevailing in the market. It is noted that the cryptocurrency has gone down below the middle Bollinger Bands level at $0.09960 towards the lower level at $0.08739.
Source: TradingView
The momentum indicators show that the current trend is indeed a bearish one for Dogecoin price. The MACD stands at -0.00425, which is lower than the signal line of -0.00230, and the histogram shows a value of -0.00195. Red bars are growing on the histogram below the zero line, indicating that the downward momentum is increasing.
Overall, the Dogecoin price is currently experiencing a significant technical level at which the current support level could decide on a potential recovery or another leg down to lower levels.
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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