No respite for Dogecoin [DOGE] as selling pressure continues

Dogecoin [DOGE] never really stays away from headlines, thanks to the eccentric billionaire, whose latest tweet did motivate the market yet again. This week, the cryptocurrency market attempted a fresh uptrend after Bitcoin’s climb above the psychological resistance level of $40k. Closely mimicking the price action, DOGE also reduced its weekly losses to 6%.

But the positive was short-lived as traders sold as soon as prices surged. Currently, Dogecoin [DOGE] was being traded at $0.311 as reversed the gains after a dip of 3.98% over the past 24-hours. The digital asset recorded a market cap of $40.52 billion and a 24-hour trading volume of $1.56 billion, at the time of writing.

Dogecoin [DOGE] Daily Price Chart:

The volatility dropped significantly after the market downturn last month. The price of Dogecoin [DOGE] is yet to recuperate considerably. As the trend paused after the formation of a continuation pattern, the price action of the meme-coin appeared to move sideways and was oscillating between parallel support and resistance lines. As per convention, the price of the asset generally slides down after the closure of the pattern, which could be damaging for the price.

The moving average, on the other hand, continued to tread close to the DOGE price candles. The 50 DMA [Pink] hovered above the candlestick arrangement resisting an upward price action. If the upward sloping 100 DMA [Blue] breaches them and moves over, the bearish pressure will invalidate any bullish cues. In addition, the massively low volume could, further, impede DOGE’s growth in the near term.

The price of Dogecoin has been on a downward trajectory since setting up a swing high in the first week of June when it moved closer to $0.45. Since then, the bullish cues have met with significant sell pressure.

This was evidenced by the green candles of Awesome Oscillator [AO] which depicted weak bullish momentum. The Chaikin Money Flow [CMF] also took a plunge to the zero-line suggesting a phase of declining capital inflow in the coin market. To top that, the RSI fell below the 50-median line demonstrating an increasing sell pressure among the market participants.

Dogecoin could now attempt a rally to the upper ceiling of the rectangle pattern at $0.44 which may act as a stiff resistance. If the asset does manage to break the level, it could target other resistance levels of $0.55 and $0.69 respectively. However, the above charts depicted that the bears have an upper hand in the market. Hence, DOGE needs to watch out $0.26 level. If this support point is breached, it risks a fall to levels last seen in April.