Crypto NewsDogecoin (DOGE)

Dogecoin Price Drops, Is It a Smart Idea to Short?

the Dogecoin-Price has remained motionless for the past few weeks. Recently, DOGE lost the $0.072 support line on the constant sideways trading. In the last 24 hours, the coin has fallen almost 3% on its chart.

The meme coin has moved just 0.7% over the past week. When Bitcoin started acting shaky on its chart, many altcoins that had made gains began retracement on their respective charts. However, technical indicators suggest that the asset could register gains in the next trading session.

The coin is seeing a drop in demand on the chart, but it’s not expected to last long. Although DOGE had pierced several support lines, the coin could soon recover from the failure. The ultimate resistance level for Dogecoin was $0.078.

Buying pressure must return to the market for Dogecoin price to aim a move above $0.078 and attempt to trade near $0.080. Touching $0.080 will invalidate the bearish thesis for a considerable period. the market capitalization of Dogecoin did not indicate that bears were creeping back into the market.

Dogecoin Price Analysis: One-Day Chart

Dogecoin Price Drops, Is It a Smart Idea to Short?, Crypto Trading NewsDogecoin was trading at $0.070 on the one-day chart | Source: DOGEUSD on TradingView

DOGE was priced at $0.070 at press time. The coin was secured above its $0.066 support line, but a pullback from the $0.066 level will ensure the bears are fully back. overheadResistance for the coin was $0.072 and then $0.078.

As far as the indicators are concerned, Dogecoin price will not have too much trouble moving above the $0.072 level, but the $0.078 price level will prove to be a hard resistance level for Dogecoin causing it to be the case coin to lose value.

Regarding the shorting opportunity, it is better to wait as Dogecoin price is eyeing the next level of resistance. Shorting right now will bring more losses to traders. The amount of Dogecoin traded in the last session has decreased, indicating a bearish bias.

Technical Analysis

Dogecoin Price Drops, Is It a Smart Idea to Short?, Crypto Trading NewsDogecoin noticed a drop in purchasing power on the one-day chart | Source: DOGEUSD on TradingView

A drop in accumulation on the daily chart has caused Dogecoin buyers to disappear from the market. The Relative Strength index was below the 40 mark, suggesting that sellers outperformed buyers in the market.

Dogecoin’s price traded below the 20-Simple Moving Average line, once again reaffirming that sellers are driving the price momentum in the market. Despite this, increasing demand will drive the meme of the coin to rise above the 200-SMA (green) line, which is considered extremely bullish.

Related reading: Ethereum Price Consolidates Gains, Why ETH Could Start Another Climb

Whenever Dogecoin price surged above the 200 SMA line in the past trading sessions, the coin has rallied. For this reason, it would not be a good idea to short the asset now.

Dogecoin Price Drops, Is It a Smart Idea to Short?, Crypto Trading NewsDogecoin showed buy signals on the one-day chart | Source: DOGEUSD on TradingView

Technical indicators were showing buy signals as the price continued to rally over the next few trading sessions. Unlike shorting, the asset has offered traders an entry point. The Moving Average Convergence Divergence shows the price dynamics; green signal bars formed, which indicated a buy signal for the coin.

Similarly, the Awesome Oscillator suggests the price trend and direction, while the indicator also displays green histograms associated with buy signals. The buy signals mean that the price will increase in the coming sessions.

Featured image by UnSplash, charts by TradingView.com

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button