Bearish momentum has remained the key driver of the ongoing downtick in Dogecoin (DOGE). Within the last 24 hours, DOGE has mostly traded within a narrow range between $0.0104 and $0.0105. This witnessed a significant price upshoot where DOGE rose to almost $0.01051 before it steadied again within its range.
Resistance and support levels have been established with resistance at $0.01051 which is around the recent high prices recorded in the market. The support level is seen at $0.0104 where price tends to retreat after any spike or drop in value. The sideways movement indicates that DOGE could consolidate further as traders weigh potential future moves.
Trading volume for Dogecoin over 24 hours increased by 32.80%, indicating more transactions were closed during this period. This could imply that there is growing interest in DOGE which an increase in volatility or speculative trading might cause.
However, despite the rise in volume, it remained range-bound showing caution among investors.
From its all-time high in May 2021, when it lost over 85% of its value, to March 2024, when it reached a maximum of about $0.2288, Dogecoin has been declining, with a decrease of more than 54%. Nevertheless, some analysts, including Cryptorphic (@Cryptorphic1), believe that a bullish trend might be just around the corner.
Furthermore, the technical analysis shows that the price of Dogecoin has both bullish and bearish sentiments. We have noticed the breakout of an accumulation channel on February 21 in the weekly DOGE/USDT chart. During this breakout, a significant bullish candle was created and some traders believe that it may be the beginning of a new bull market.
Nevertheless, there are difficulties in the current market environment. The price of DOGE is now sitting above the 200-day Exponential Moving Average (EMA) which is a sign of a long-term buy signal. On the other hand, it fails to hold above the 100-day EMA, which may indicate near-term resistance.
The RSI is still below 45, indicating that DOGE still has more room to gain further up before it can be considered overbought and that the bears are not yet through with it.
Dogecoin’s price action is testing major resistance levels around the $0.1100–$0.1120 range, which also coincides with the 200 EMA. Additionally, strong resistance near $0.1200 is seen in previous price action. The immediate support lies at $0.1, whereas previous lows suggest a more significant support level at approximately $0.08.
However, the recent development of a falling wedge pattern can be seen as a signal of potential short-term bullish trend changes associated with DOGE. The wedge construction indicates an expected violation below this bullish formation for further downside risks. Despite this, the bearish outlook has been reinforced by two factors: first, the declining trendline from the 50EMA, and second, Doge has yet to break above the 200EMA.
However, some on-chain metrics indicate positive trends. Onchain metrics show an increase of +7.48% in Open interest for DOGE over the last day together with an increased number of large transactions conducted using Dogecoin indicating that big market players are accumulating positions.