As most meme coins turn red this week, Dogecoin currently shows signs of strength with a 2% gain in the past hours. It may resume buying if trading volume continues to increase daily.
Since Doge took off from the $0.8 range in August, its short-term bearish structure has slightly shifted following weeks of positive sentiments surrounding the overall crypto market.
This sentiment has temporarily cooled off following a serious drop from the $0.132 level late last month. Luckily, it managed to locate support above the psychological $0.1 level and traded calmly there since last week.
Amid the ongoing overall market meltdown, Doge’s price appears strong on the hourly chart following a minor daily gain. It is trying to resume buying but there’s not enough volume to bring the short-term bulls back in action.
A consistent increase in the volume inflow could bring strength back into the market. Even if that comes into play, the price must increase above the previous monthly high before we can confirm further upward movement.
On the other hand, the bears are not giving up on the market. If by any chance they manage to pull the price below the mentioned psychological level, the asset may dip through August support to a new yearly low.
While there’s room for more drops, Doge is currently weak on the monthly chart as the overall market structure remains bearish.
DOGE’s Key Level To Watch
Retaking this week’s $0.115 high could propel buying to the $0.129 resistance level and mainly $0.143. The next target to watch is $0.166.
Holding support above $0.1, the probable level to consider for drops is $0.089, followed by $0.081 – August’s low. A new low may surface at around $0.6 if a crackdown occurs breaks.
Key Resistance Levels: $0.115, $0.129, $0.143
Key Support Levels: $0.1, $0.089, $0.081
- Spot Price: $0.109
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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