Dogecoin (DOGE) has seen a sharp decrease in price recently, nearing its range low after being rejected from its range high earlier this month. Reasons for this drop in price can be attributed to its breakdown from both a short-term and a long-term pattern. The short-term has started to show bearish momentum, which could possibly cause the Dogecoin price to reach its range low of $0.072. Though short-term trends suggest a bearish outlook, its price could remain range-bound or bounce back up if the ascending support line is reclaimed.
The Dogecoin price began increasing on March 21, finding strength beneath the long-term support found at its $0.072 range low. After a steady increase, DOGE’s price tested the $0.100 resistance area on April 3. This resistance area is considered a horizontal line and the 0.382 Fibonacci retracement level; the Fibonacci is a sequence of horizontal lines used to identify support and resistance levels. After attempting to break through, DOGE’s price decreased, validating the $0.100 area as a resistance level. If DOGE’s price surpasses this level, the next areas of resistance will be found at $0.122 and $0.125, which are the 0.618 Fibonacci and the 0.658 Fibonacci, respectively.
Technical indicators offer some insight on the short-term trend of Dogecoin, showing the price could possibly decrease to its range low. Firstly, Dogecoin has seen a breakdown from the ascending support line on its six-hour time frame. When a line measures the slope of an upward movement, its breakdown signals the end of the upward trend. Unexpectedly, the Relative Strength Index (RSI) has also been on a downward trend, showing bearish momentum as the reading breaks beneath the 50 mark. This signals a bearish Dogecoin price prediction, though positive movements could occur if the ascending support line is reclaimed.
Overall, it is likely that the Dogecoin price will reach its range low due to the bearish short-term trend. Though, speculators should remember that despite the bearish outlook, Dogecoin’s price could remain range bound or bounce back up if it successfully reclaims the $0.100 area.
Jaxon Chavez
- 2023-04-24
Dogecoin Price Analysis: DOGE Nearing Range Low
Dogecoin (DOGE) has seen a sharp decrease in price recently and is nearing its range low after being rejected from its range high earlier this month. Reasons for the drop in price can be attributed to its breakdown of both a short-term and a long-term pattern. Read on to see two scenarios that could decide the future price of Dogecoin.
