Dogecoin’s lack of stronger cues means this for the asset

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be taken as funding recommendation

After touching document ranges all through April and May, Dogecoin suffered an enormous decline of 70% on the again of a wider crypto-sell. A descending channel breakout supplied non permanent aid, however the bears have been dominant within the market of late.

Constant promoting during the last three weeks dragged the cryptocurrency in the direction of its 200-SMA (inexperienced), a stage the place some shopping for resurgence was famous. On the time of writing, Dogecoin held the sixth spot on CoinMarketCap’s crypto-rankings and was being traded at $0.255, up by 8% within the final 24 hours.

Dogecoin Every day Chart

Supply: DOGE/USD, TradingView

Whereas a 60% hike during the last three days did carry Dogecoin from its current woes, key areas had been but to be toppled. An necessary area of $0.298, which triggered a 40% decline final week, had flipped to resistance and had the potential to disclaim an prolonged rise. Apparently, this space additionally clashed with the every day 20-SMA (purple) and bolstered the area’s defenses.

An in depth above these ranges might lead to one other 26% hike in the direction of $0.365, however stronger cues are required for such an consequence.

Reasoning

Whereas the market bulls gave the impression to be in command, the Relative Power Index was denied a hike above 50 and remained in bearish-neutral territory. The Superior Oscillator famous a bit of bearish divergence because the purple bars rose under the half-line. There was some indication of bullish momentum, however not sufficient to warrant one other value hike.

The Supertrend Indicator nonetheless flashed a promote sign however positioned a stop-loss at simply above the 20-SMA at $0.323. The Seen Vary’s level of management additionally lay round this zone. With stiff resistance current at numerous ranges on its every day chart, Dogecoin required stronger alerts and a broader market flurry to rise above these areas. Failing to take action might drag the cryptocurrency again to $0.217 – An space that triggered DOGE’s 70% decline on 19 May.

Conclusion

An in depth above $0.284 might prolong gains for Dogecoin, however its indicators had been much less supportive of an prolonged bullish situation. As a substitute, the cryptocurrency might head south and again in the direction of $0.217 earlier than its subsequent leg upwards.


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