It looks like Dogecoin price is currently falling into a deep bearish well as the price has lost almost 9% in the past few hours. The declining trend is expected to continue as the bears may have pulled out their profits after the bulls pushed up the price in the last 24 hours. Although the entire cryptocurrency market is currently trending down, a low probability of a DOGE price rally can be expected.
The longer term charts indicate that the price volatility is increasing and hence the current decline is due to rejection from the upper resistance. A pullback could pull the price towards the lower support level of $0.07 by the end of trading the day. Furthermore, a rebound could help the price maintain its trade within the wedge until it reaches the top.
However, after reaching the top, DOGE price is expected to decline towards the $0.07 lower support level at $0.0692. These levels can hold the price tight and after minor accumulation, the asset may continue with its rising consolidation. If it fails to hold, it could break these levels to reach the next support level of $0.062.
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Is Dogecoin Dead? Will it ever get to $0.1 in 2022?
Dogecoin price has been quite bullish for the past week as the asset has already registered a jump of over 58%. Hence, the current decline of 8% could possibly be due to exhaustion of the bulls. Therefore, a correction could push the price down by 2% to 3%, beyond which a significant uptrend is imminent.
On the other hand, the technicals are quite bullish as the RSI is forming a strong uptrend, which is reducing the bearish effect. Buying volume has accumulated quite a bit and hence it may face some selling pressure. However, currently the focus is on the price of bitcoin which is approaching the crucial support.
If BTC price falls below $20,500 again, the market will largely go down with the price of Dogecoin (DOGE).
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