A descending trendline has been carrying the ongoing correction in Dogecoin price, giving it a visible direction in the last five weeks. During the downfall, the coin price turned down from the resistance trendline several times indicating the market participants are actively selling at this trendline. Here’s how this trendline may further influence the DOGE Price and how interested traders may look for long entry opportunities.

Key Points:

A high volume breakdown from the $0.067 support puts Dogecoin price on a 15% downside
A falling Doge price may receive dynamic resistance from a 20-day EMA
The 24-hour trading volume in the Dogecoin coin is $383.5 Billion, indicating a 22.5% gain.

Source-Tradingview

A V-top reversal from $0.1 psychological resistance has plunged the Dogecoin price to several support levels and evaporated the entire gains of January month, This downfall has recorded a 34.35% loss as the coin price plunged below the December 2022 low of $0.0677 and currently trades a $0.065.

A high momentum breakdown from the $0.065 support on March 9th, indicated the sellers are preparing for further downfall. However, the daily candle formation in the last few days shows lower rejection attached to them, projecting the buyers are trying to undermine this breakdown.

Also Read: What Are Bitcoin Ordinals And How Do They Work?

Amid the tug of war between buyers and sellers, the DOGE price may continue to waver below the $0.065 flipped resistance or witness a minor pullback to the downsloping trendline.

However, until the overhead trendline is intact, the sellers will further extend this ongoing downfall and drive the prices to September-October bottom support of $0.056.

Technical indicators

RSI: The daily RSI slope plummets into the oversold region indicating the trades have overextended with selling activity, and the possibility of a minor pullback is high.

EMAs: A lateral walk in 100-and-200-day EMAs accentuates a sideways trend for Dogecoin, however, the price moving below these EMAs indicates the sellers have an upper hand.

Dogecoin Price Intraday Levels

Spot rate: $0.066
Trend: Bearish
Volatility: High 
Resistance levels- $0.067 and $0.075
Support levels- $0.056 and $0.05

The post Dogecoin Price Faces a 15% Downside Risk as Key Support Level Break appeared first on CoinGape.

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Filed under: News - @ March 12, 2023 3:50 am