The price decline of Dogecoin has been moving along a downward trendline for the past five weeks, giving it a clear direction. The fact that the coin price repeatedly reversed from the resistance trendline during the decline suggests that sellers are engaged at this trendline. Here is how this trendline might continue to affect the price of DOGE and how interested traders might search for long entry points.
The gains from January month were completely erased by a V-top reversal from $0.1 psychological resistance, which drove the Dogecoin price to numerous support levels. This decline saw a loss of 34.35% as the coin price fell below the December 2022 low of $0.0677 and is now trading at $0.065.
On March 9th, a high momentum collapse from the $0.065 support showed the sellers are gearing up for additional decline. The daily candle formation, however, suggests that buyers are attempting to weaken this breakdown because it has been showing lower rejection over the past few days.
The DOGE price may continue to fluctuate below the $0.065 flipped resistance during the buyer-seller struggle, or it may see a small pullback to the downward trendline.
But, until the overhead trendline is unbroken, the sellers will continue to push the prices lower until they reach the $0.056 bottom support for the months of September and October.
Technical Tools
RSI: The chance of a slight retreat is strong when the daily RSI slope plunges into the oversold region, indicating that transactions have been overextended with selling activity.
EMAs: Dogecoin's downward trend is highlighted by a lateral move in the 100- and 200-day EMAs, but the price going below these EMAs suggests the sellers are in control.
Dogecoin Intraday Levels of Price
- Spot rate: $0.066
- Trend: Bearish
- Volatility: High
- Resistance levels- $0.067 and $0.075
- Support levels- $0.056 and $0.05
