What started as a joke in the year 2013 is one of the hottest investments in 2021. DOGE-Open-source digital currency was designed by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, it was forked from Litecoin in December 2013. Based on a dog meme, Dogecoin was designed as a fun, lighthearted cryptocurrency that would appeal to a wider audience than the core Bitcoin audience. Let us see how the technical analysis of DOGE looks.
In the past seven days, Doge has traded between $0.240 and $0.201, that is, from September 15, 2021, to September 21, 2021. Thus, in the past week, Doge has decreased by approximately 16.05%. Thus, bears have overpowered the market and taken over all the positions.
The regression trend of the token is trading downward. To change the direction of the trend, the price will have to give a breakout. The price is forming a narrow range, therefore we can expect it to give a breakout in either direction soon. A breakdown from this direction will confirm the bear trend for this coin.
Let us see what the indicators are reasoning, for the day ahead and tomorrow;
Doge is currently trading at $.202. Which is close to its crucial support level. At the support level, it is forming lower highs and lower lows. Therefore, a breakdown from this level will highlight new support levels and can make new lows. Watch out for crucial support levels.
Also, the RSI indicator is currently cooling off. It is currently at the 29% mark. Currently, it is taking support of the trend line and is making a bearish divergence. Thus, indicating that the selling pressures are slowly mounting. We can expect the price to fall for the rest of the day.
The MACD and signal lines are in the negative zone, thus indicating a sell signal. Moreover, a bearish crossover by the MACD line over the Signal line has occurred. Thus, we can witness that the overall market momentum is bearish, and the price will continue its downtrend.
The On balance volume is trading in a constant trajectory.
In short, when we look at all the three oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch to see if an intermittent price rise is a corrective action or the beginning of a positive trend.
Currently, the DOGE price is taking support from the last levels. Therefore, this is a small pullback that we are seeing, and the price is currently forming a base between these support levels.
However, if it breaks the immediate support level of $0.204, it will highlight the next support level of $0.012. Thereafter, traders can scalp accordingly.
If the bulls take over the position again, then we will expect the price to break out of its immediate resistance of $0.023. Post which, it will highlight the following resistance levels of $0.028 and $0.31.