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If the major and minor cryptos are marching to the beat of Bitcoin and Ethereum, the meme-coin, DOGE, is not far away. The digital commodity, which has a market capitalisation of $34.10 billion, is the seventh-largest cryptocurrency according to CoinMarketCap.
DOGE had risen by 25% in a single day and was trading at $0.2733 at the time of publication.
As seen in the chart above, the price of DOGE broke out of a cycle of uncertainty in mid-April and increased by 534.75 percent. Despite the fact that a reversal accompanied this rally, the market was able to find and hold support at $0.2237.
DOGE price will have to be careful of the lurking bears when the market matures one day at a time.
The big divergence of Bollinger Bands indicated that volatility in the DOGE market remained exceptionally strong. The signal line was approaching the price candles and serving as reinforcement. This meant that, even though the price stayed above the support level, selling pressure was increasing.
The relative strength index, which had stayed in the overbought region due to hype-driven buyers, also confirmed this. However, as the excitement wore off, investors cashed in their earnings, leading the price to fall as low as $0.1552. The boom in Bitcoin and Ethereum has helped the doge market retain its current valuation, but the trend was shifting.
MACD line just crossed under the signal line hinting at the beginning of the bearish market.
Take Profit: $0.0975
Risk to Reward: 1.38
The new Dogecoin business may be in for a correction. While the price has stayed above the support line, increased selling pressure could result in a significant drop to $0.0975.