Dogecoin Price Movement Analysis for26th March, 2021

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The year 2021 has proven to be a brilliant one for Dogecoin. The well-known meme-coin is now ranked in the top 20 on CoinMarketCap’s ranking. Interestingly, despite witnessing a massive price spike at the end of January, Dogecoin has managed to retain its price level and has continued to trade range-bound in recent weeks.

Dogecoin was valued at $0.052 at the time of publishing, having risen by 2.1 percent in the previous day.

Dogecoin 1-day chart 

Source: DOGE/USD, TradingView

The price of Dogecoin remains trapped between the tight limits of its immediate resistance at $0.066 and help at $0.046. This has been the case since mid-February, and there is no hope that this sideways market activity will conclude anytime soon.

If DOGE experiences a small price reversal in the coming week, there is still good support across the $0.028 price point. In such a case, this level will help to keep the coin’s price constant.

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The extended period of restructuring often renders it difficult for traders in the existing market to determine if a long or short stance will be best.

Rationale 

Dogecoin’s technical indicators paint a bearish picture for the coming week. The MACD indicator has completed a bearish crossover, indicating that a price correction is expected within the next week. The RSI measure indicates some divergence but remains in the neutral sector.

Since both metrics are polarised in their evaluation of the existing environment, one might argue that DOGE is likely to undergo a prolonged phase of sideways price activity.

Conclusion 

Dogecoin has been incredibly rangebound in recent weeks, and no escape is planned at this time. The coin is expected to oscillate between its immediate opposition and assistance in the coming week. However, if there is a sudden increase in bearish momentum through the altcoin market, there is a good risk that DOGE will not be immune.

 

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