294 Interactions, 2 today
Dogecoin dominated the crypto-spotlight, particularly during its bull run from mid-April to early-May. A significant portion of its 5,400 percent year-to-date gains occurred during this period, as a lot of external events contributed to the ‘meme coin’s’ success. Dogecoin, which has been positioned among the industry’s top-10 alts in recent months, was ranked sixth on CoinMarketCap with a market worth of approximately $40 billion at the time of publication.
Dogecoin daily chart
While Dogecoin’s figures were amazing, its trend has been quite gloomy since breaking records at $0.73 in early May. DOGE has struggled to hold higher levels since then, even falling below the strong defensive line of $0.44. In early June, market bulls attempted a rally above the aforementioned area, but sellers thwarted additional gains.
The downturn from the top in May resulted in the development of a descending triangle, with the bottom trendline representing a support zone between $0.25 and $0.223. Further southerly movement and a break below the lower trendline might unleash a 37 percent drop below the $0.141 support. To invalidate the pattern, DOGE must defend $0.25-$0.223 against a breakdown and aim for a rise over the $0.28-resistance.
Since DOGE’s April high of $0.44, the Relative Strength Index has been steadily declining. The downturn will ultimately lead to the oversold zone, where a bounceback is possible. DOGE would most certainly be under pressure till then.
Furthermore, the market had failed to show any indications of recovery after the May 19th disaster. While the MACD histogram indicated a decrease in negative momentum, a crossing below the Signal line shifted the market back towards sellers. Over the last week, the Awesome Oscillator also highlighted choppy movement.
Because the RSI indicated additional downside and the MACD and Awesome Oscillator assumed a bearish-neutral stance, Dogecoin may suffer greater losses in the coming days. Losses would be exacerbated if the cryptocurrency fell below the $0.25-0.223 support level — a situation that might push the coin towards the $0.141 support level. The 200-SMA (green) bolstered this region and would give an extra layer of support.
Dogecoin’s price remained vulnerable to further declines since it was trading within a falling triangle. A break below the lower trendline might result in a 37% decline to $0.141 and the 200-SMA (green). While DOGE’s technicals did not yet signal a breakdown, multiple warning indicators were there in the market, and traders should be wary of a drop in the coming weeks.