Price: $0.39727 2.9769%
Market Cap: 58.36B 1.7988%
Volume (24h): 10.79B 0.4%
Dominance: 1.7988%
Price: $0.39727 2.9769%
Market Cap: 58.36B 1.7988%
Volume (24h): 10.79B 0.4%
Dominance: 1.7988% 1.7988%
  • Price: $0.39727 2.9769%
  • Market Cap: 58.36B 1.7988%
  • Volume (24h): 10.79B 0.4%
  • Dominance: 1.7988% 1.7988%
  • Price: $0.39727 2.9769%
Home > Information news > Dogecoin (DOGE) Price Battles at Horizontal Support – Bounce or Breakdown?

Dogecoin (DOGE) Price Battles at Horizontal Support – Bounce or Breakdown?

Release: 2024/02/01 18:35 Reading: 747

Original author:BeInCrypto

Original source:https://beincrypto.com/?p=462037

The Dogecoin (DOGE) price trades in a long-term corrective pattern and a short-term bearish one.

DOGE has returned to a horizontal support area that has existed since the start of the year. Will it bounce or break down?

Dogecoin Falls After Rejection

The technical analysis of the daily time frame shows that the DOGE price has fallen since reaching a high of $0.107 on December 11, 2023. The downward movement caused a decrease inside an ascending parallel channel that had existed since June 2023. 

While Dogecoin bounced at the pattern’s midline, it was rejected by the resistance trend line twice (red icons) on January 11 and 21, 2024, respectively. DOGE now trades close to the channel’s midline again. 

The daily Relative Strength Index (RSI) gives a bearish reading. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.

Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The indicator is below 50 (red circle), a sign of a bearish trend.

DOGE Price Prediction: Will Price Break Down From Bearish Pattern?

The six-hour time frame technical analysis shows that DOGE has fallen under a descending resistance trend line since December 2023. When combined with the $0.077 horizontal support area, this created a descending triangle, considered a bearish pattern.

The DOGE price trades just above this support area, while the RSI has fallen below 50 (red circle). If it breaks down, DOGE can drop by 27% to the closest support area at $0.057. 

Despite the bearish Dogecoin price prediction, a strong bounce at the $0.077 area can trigger a breakout from the resistance trend line and a 12% increase to the next resistance at $0.087.

For BeInCryptos latest crypto market analysis, click here

Top crypto platforms in the US | February 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Selected Topics

  • Dogecoin whale activity
    Dogecoin whale activity
    Get the latest insights into Dogecoin whale activities with our comprehensive analysis. Discover trends, patterns, and the impact of these whales on the Dogecoin market. Stay informed with our expert analysis and stay ahead in your cryptocurrency journey.
  • Dogecoin Mining
    Dogecoin Mining
    Dogecoin mining is the process of adding new blocks of transactions to the Dogecoin blockchain. Miners are rewarded with new Dogecoin for their work. This topic provides articles related to Dogecoin mining, including how to mine Dogecoin, the best mining hardware and software, and the profitability of Dogecoin mining.
  • Spacex Starship Launch
    Spacex Starship Launch
    This topic provides articles related to SpaceX Starship launches, including launch dates, mission details, and launch status. Stay up to date on the latest SpaceX Starship launches with this informative and comprehensive resource.
  • King of Memes: Dogecoin
    King of Memes: Dogecoin
    This topic provides articles related to the most popular memes, including "The King of Memes: Dogecoin." Memecoin has become a dominant player in the crypto space. These digital assets are popular for a variety of reasons. They drive the most innovative aspects of blockchain.