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Dogecoin saw huge losses at the beginning of the month, with gains totalling more than 650 percent in just a few days. However, the coin’s bullish momentum seems to have waned since then, and the alt is now in a protracted consolidation period.
Dogecoin was trading at $0.31 at the time of publishing, with a market capitalisation of more than $40 billion, making it the seventh-largest cryptocurrency in the market. The coin’s price has increased by 50% in the last week. However, with its previous major spikes, these gains seemed to be minor.
Dogecoin 1-day chart
If one looks at the coin’s price behaviour over the last month, one can clearly see the coin’s sideways movement. The market movement has been strictly limited to the upper limit of $0.41, which has proven to be substantial resistance, and the lower limit of $0.22. The immediate resistance and support levels have only been broken a few times, and it is difficult to predict whether a break of $0.41 is likely in the coming week.
As a result, considering the current market conditions, it is difficult to advocate for either a long or a short stance from a trader’s perspective.
The scientific metrics on the coin yielded a mixed verdict. The MACD predictor detected yet another bearish convergence, this time with the Signal line crossing over the MACD line. However, the story seemed to be different in the case of the RSI indicator, which remained close to the overbought zone.
DOGE could be able to break through its resistance level if the buyer demand stays high. The coin, though, was not resistant to an immediate pullback.
At the beginning of the month, Dogecoin saw a very encouraging rally. Although the coin has been able to sustain its price level after its rally, growth for the common meme-coin has somewhat stalled. DOGE is most likely to trade sideways in the coming week; but, if the sellers’ market prevails, another attempt to break its immediate support will occur.