Dogecoin Price Could Plunge To $0.11 Owing To A Consistent Downslide
05 May 2022 - 11:00AM
NEWSBTC
Dogecoin, the largest meme-coin by market capitalisation has bled
for close to a week now. Prices of the coin have looked bearish in
the last 24 hours and continued to look negative at press time. In
the past week, Dogecoin lost 4.9% because of falling buying
strength. The bulls have stayed out of the charts since the
beginning of this month. If the current price action persists,
Dogecoin would aim for its nearest support line. Bears have taken
control of the market as investors have continued to flee the
market. Compared to last year at the same time, Dogecoin has
plummeted by 82% from its all-time high of $0.73. Not just
investors, the Federal Open Market Committee’s meeting related to
hiking interest rates has also kept investors on their toes.
Dogecoin Price Analysis: Four Hour Chart Dogecoin was priced at
$0.131 at the time of writing. The coin had held prices above the
support line of $0.131 quite well because meme-coin barely fell
below that price in the past month. Over the past few weeks,
Dogecoin has seen relatively choppy price action. Price recovery
for Dogecoin has been brief because right after the coin soared in
the last week of the past month, it has been unable to hold onto
the price momentum. The meme-coin displayed bearish engulfing
candlesticks twice on its charts and every time after that reading,
prices have slid. Sell-off of the asset doesn’t seem unnatural as
it is quite a common scenario after bearish engulfing candlesticks.
Prices can continue to move lower than their current level.
Immediate support for the coin stood at $0.129 and then at $0.118.
Dogecoin last traded near the $0.118 price level in March. On the
flip side, the coin could target $0.14 if the bulls come around.
Related Reading | Dogecoin Displays A Falling Wedge Pattern; Here’s
What It Means Technical Analysis The bulls in the market tried to
find their way back over the last trading sessions as the coin
attempted to trade above the 20-SMA line. Trading above the 20-SMA
line also means a recovery in buying strength in the market. This
means that with increased demands prices could be pushed above the
20-SMA line. At press time, however, sellers outnumbered buyers in
the market. The Relative Strength Index also noted a small uptick
which corresponds with an increased number of buyers but at the
time of writing, buying strength remained low. MACD and Chaikin
Money Flow, both have a different picture to paint for the
meme-coin. Both the indicators pointed towards a positive reading
at the time of writing. MACD, which determines the market momentum
underwent a bullish crossover and displayed green histograms
signalling that prices have turned bullish. It is still quite early
to put a finger on that as the indicator could be giving off
signals based on the past immediate trading sessions where DOGE
tried to recover. Chaikin Money Flow indicates the capital inflows
and capital outflows. The indicator was seen above the half-line
signifying that capital inflows have experienced an increase. Over
the short-term, DOGE has depicted a bearish price action, however,
demand from investors could drive the bears away over the upcoming
trading sessions. Related Reading | Bitcoin Gives Bullish Clues,
Will The FED Meeting Get In The Way? Featured image from UnSplash,
chart from TradingView.com
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