Dogecoin Moves Close To Support level, Will The Bulls Defend This Mark?

The Dogecoin price had managed to bounce off its vital support line of $0.080. Although the meme coin traded above the aforementioned price mark, the bulls could not hold onto the recovery. Over the last 24 hours, DOGE has managed to move up by 0.8%, confirming lateral trading. In the past, Dogecoin has retraced by 4%. At the moment, Dogecoin has been stuck under its stiff barrier for multiple weeks now; and unless the meme-coin breaches that level, it will continue to struggle in the market. The market structure continued to depict a bearish structure as DOGE stood right above its support level. Demand for the meme coin was also low as buying strength did not recover over the past few weeks. Accumulation also fell as buying pressure was low. With Bitcoin slightly recovering on its daily chart, other altcoins too could move north over the upcoming trading sessions. If BTC breaches $24,000, major altcoins will note a recovery. Currently, DOGE is trading 89% below its all-time high secured in 2021.

Dogecoin Price Analysis: One-Day Chart

DOGE was trading at $0.082 at the time of writing. This is positive as it is still above $0.080, which has acted as a crucial support level for the meme coin. However, a fall from this mark will take the coin to $0.0780, but DOGE might fall further and park at $0.076 before the next signs of recovery. Over the next trading sessions, Dogecoin has to just remain above the $0.080 mark. Overhead resistance for Dogecoin stood at $0.084, and a move above that could take the coin to $0.089, which will act as a stiff price ceiling. Surpassing that mark will bring the bulls back to full form. The amount of Dogecoin traded in the last session was high, which indicated that sellers were dominating the market.

Technical Analysis

DOGE noted low buying strength for most of this month as the coin was stuck under immediate resistance. The Relative Strength Index was below the neutral line, which meant that buyers were still lower than sellers in the market. The indicator, however, noted an uptick as an indication of buying strength trying to recover on the daily chart. Similarly, the Dogecoin price slipped below the 20-SMA to represent bearish strength as sellers were driving the price momentum in the market. The price might attempt another leg up as the coin formed a golden cross where the 50-SMA (yellow) crossed over the 20-SMA (red), representing upcoming bullish price action.

In consonance with low buying strength, DOGE displayed sell signals on the daily chart. The Moving Average Convergence Divergence indicates price momentum and trend reversals; it formed red histograms, which are linked to sell signals for the asset. However, these sell signals were declining in size. The Chaikin Money Flow measures the volume of capital inflows and outflows at a given time. The indicator noted an uptick and moved above the half-line, which meant that the capital inflows increased at press time.