Dogecoin has been one of the best-performing memecoins, and it resisted the downtrend sponsored by BTC as it bounced from a support level of $0.09136. The bounce from the price level sees DOGE propel to as high as $0.1437, which is currently a resistance based on the market trend.
Current Price and Technical Analysis
As of the time of publishing, Dogecoin is trading at approximately $0.12361, indicating a significant decline of 7.27% in the last 4 hours. The EMAs provide critical insights into the current trend and potential future movements:
The current price of $0.12361 is below all the short-term (EMA 20 and EMA 50) and long-term (EMA 100 and EMA 200) EMAs, indicating a bearish trend in the short to medium term.
Trendline Analysis
The chart shows a well-defined ascending channel, indicating a period of upward momentum. However, recent price movements suggest a potential breakdown from this channel.
The upper trendline has been acting as a resistance level, with recent peaks failing to break above it significantly. The lower trendline initially provides support, crucial for maintaining upward momentum. The current price movement suggests a break below this trendline, indicating potential bearish pressure.
Related article: Notcoin 24-Hour Price Analysis: (NOT) Declines by 4.76% in 24 Hours; Will It Break Through EMA Resistance?
Support and Resistance Levels
Critical support and resistance levels are based on historical price action and the EMAs. Around $0.12815 to $0.12855 (corresponding to EMA 50 and EMA 100).
Immediate Support: Around $0.12457 to $0.12468 (corresponding to EMA 200 and EMA 100). According to the chart, the next support levels to watch out for are $0.11785, $0.11406, and $0.11123.
Notably, the recent decline below the $0.12457 level (EMA 200) suggests that the support at this level may not hold, pointing to further potential downside.
Short-Term Forecast
Considering the current price below all major EMAs and the break from the ascending channel, the outlook for Dogecoin over the next 24 hours appears bearish. These key points to monitor could determine the direction of Dogecoin.
If there is a bullish correction, a potential retracement to EMA levels could surface. If this occurs, the price may attempt to retest the $0.12468 (EMA 100) and $0.12815 (EMA 50) levels.
The downside risk is that if the price continues to fall, the following significant support levels to watch are $0.11785 and $0.11406. A breach below these could see DOGE testing the $0.11123 level.
Conclusion
The overall analysis indicates a bearish sentiment for Dogecoin in the short term. The break below the ascending channel and all major EMAs suggest further downside risk. Traders should look for potential support at the $0.11785 and $0.11406 levels while watching for bullish corrections that could see a retest of the $0.12468 and $0.12815 resistance levels.
