Dogecoin Under Pressure: Will Bearish Momentum Push Meme Coin Below $0.06?
A Crucial Juncture for Dogecoin’s Fate
Dogecoin (DOGE) is currently standing at a pivotal crossroads, and the crypto community is closely watching its movements. The $0.06 support level, which has been a stronghold for DOGE enthusiasts since early June, is now under increasing selling pressure, raising concerns about the coin’s future trajectory.
The Significance of Support and Resistance Zones
For DOGE, the $0.06 mark has been a critical support level that has held firm during recent bearish trends. However, the repeated tests of this support zone have begun to weaken its resilience, creating an opportunity for bearish forces to take control.
Current DOGE Price and Technical Indicators
As of the latest data from CoinGecko, DOGE is currently trading at $0.061140. While it has recorded a modest 0.4% gain over the past 24 hours, the coin has seen a 1.2% dip over the last seven days. To gain deeper insights into DOGE’s current state, let’s examine two essential technical indicators: the On Balance Volume (OBV) and the Relative Strength Index (RSI).
On Balance Volume (OBV)
In October, the OBV had shown signs of an uptrend, indicating positive trading volume. However, recent developments have seen a drop in trading volume, suggesting an increase in selling pressure. This shift in OBV dynamics has raised concerns among investors, indicating a potential shift in market sentiment.
Relative Strength Index (RSI)
The RSI has now dipped below the neutral 50 level, reaffirming the presence of selling pressure. This shift in RSI values places DOGE at a pivotal juncture, with both bullish and bearish scenarios in play.
Possible Scenarios
According to a recent price report, the fate of DOGE hangs in the balance. If buyers can successfully defend the $0.06 support level, DOGE may find itself in a short-term target range of $0.064 to $0.067. This scenario would provide some relief to DOGE enthusiasts.
However, if sellers manage to breach this critical support, the near-term outlook becomes bearish, with a potential target of $0.055. This would further deepen the prevailing bearish sentiment and pose challenges for DOGE’s immediate future.
In conclusion, Dogecoin is facing a critical moment in its journey, with its performance in the coming days holding significant implications for its long-term prospects. The $0.06 support level remains the key battleground, and crypto enthusiasts are eagerly watching to see which direction DOGE will take.
Doge Technical Analysis Daily Chart:
HOW TO TRADE Doge
If DOGE breaches the $0.06 support level, it is likely to continue its downward trajectory towards the $0.055 target. Therefore, a bearish trade with an entry point of $0.061140, an exit point of $0.055, and a stop loss of $0.064 is recommended.
TRADE SUGGESTION- SELL – 0.061140, TAKE PROFIT AT- 0.055, SL AT- 0.064.