Dogecoin is back in a downtrend after undergoing a short retracement The price is now weak with the supply level increasing on the intraday trading. It may revisit the monthly low if the bulls fail to intercept.
Earlier this month, Doge lost the psychological $0.1 level following a lot of deductions since March. It later found support at $0.915 and bounced sharply with a rejection. The bounce led to a three-week retracement and the price touched $0.143 last weekend.
A rejection occurred and the price dropped. Starting this week bearishly, the meme coin is now approaching May’s $0.12 low level. A strong bounce at this low could bring back positive actions in the market.
But looking at the broader market, Doge is still maintaining a lower low and lower high pattern on the daily chart. If this pattern continues to play, it may roll back to the monthly low and even break lower as the supply level increases.
If the current monthly low contains ongoing selling pressure, we may see a quick buyback with a double-bottom formation capable of bringing the market back to the yearly high. But due to the current negative market sentiment, we can expect more drops shortly.
DOGE’s Key Level To Watch
The closest support level to anticipate a drop is $0.114. Right below this level lies the $0.105 level, followed by the monthly $0.0915 low. A breakthrough this low will confirm an extension of the bearish pattern.
If the price bounces back, Doge may face a minor resistance at $0.13 before retaking $0.1437. Breaking higher from there could activate a big surge to $0.155 and $0.175, where it initiated drops in May.
Key Resistance Levels: $0.1437, $0.155, $0.175
Key Support Levels: $0.114, $0.105, $0.0915
- Spot Price: $0.124
- Trend: Bearish
- Volatility: High
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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