Key Takeaways
- Dogecoin trades below its 50-day and 200-day EMAs, and a price turns bearish on lower timeframes.
- Dogecoin whales must protect prices from breaking below $0.3 to prevent bears from dominating prices.
- DOGE price action is in a range-bound price movement as traders and investors remain cautious following its low volume.
Dogecoin’s price action for the past few days has been really challenging to trade. The cryptocurrency market shows little to no volume present, pushing the price of Dogecoin around its high of $0.37 to a high of $0.41, which acts as strong resistance to price.
The price of Dogecoin continues to trade in a consolidation mode as investors and traders are cautious of these market conditions. Bitcoin and other altcoins have demonstrated such price action similar to DOGE for some days now, and this could last longer than expected following much liquidity flowing into the TRUMP memecoin and MELANIA token.
With the price of Dogecoin showing minimal price volatility, there are chances of price trading towards its key support zone of $0.3, holding off sell orders for weeks now. If this price action continues, investors and traders would prefer to wait on the sideline, anticipating the price to form a clear price action before buying into this crypto asset.
The general market condition can be interpreted as indecision for Dogecoin and other memecoins as market directions have become extremely uncertain and untradable for many.
Dogecoin Market Sentiment
Source – Dogecoin On-chain Data from Santiment
Social media have remained a big influence on the price of Dogecoin over the years as a favorite memecoin. However, that has not been the case recently, as the general market has been cautious for some days regarding trading crypto assets owing to the general market trend of low volume.
Although Dogecoin’s price is well above $0.344, its active wallet address and volume have dropped over the past couple of days due to market indecision, as the price could drop toward its support zone.
Dogecoin Technical Analysis For Today
Source – 4HR Dogecoin Price From TradingView
Dogecoin currently trades around $0.34, shy of its recent high of $0.4, suggesting that the price could be bearish in the lower timeframe. Trading below its 50-day and 200-day EMAs on the lower timeframe suggests that the price could suffer a minor retracement toward its strong support of $0.3.
With traders and investors becoming cautious about the current Dogecoin price action, the price could attempt to retest its support around $0.3. If the support around this region fails, we could see the price of Dogecoin drop rapidly towards its low of $0.23, which is the next strong support.
Dogecoin dropping towards a low of $0.23 will not be good for price as Bears Coils take advantage of price drops to lower prices. While the $0.4 region currently acts as resistance for Dogecoin, the price must protect $0.3 key support.
If the price of Dogecoin gains more volume, breaking above the $0.4, resistance would be suitable for traders and investors and could produce more upside potential for Dogecoin. If the current price action persists, Dogecoin could struggle to protect $0.3 as the price could be heading to lower support zones.
Overall, price action for Dogecoin on the higher timeframe remains bullish until the price breaks below $0.3 support. Then, we can conclude a complete change in trend.
