Published May 02, 2023 10:30AM ET
Dogecoin Price Plummets, Traders Eye Buying Opportunities
According to CoinMarketCap, Dogecoin (DOGE) has been under negative pressure in the past 24 hours, with the price decreasing from $0.07905 (resistance) to $0.07763 (support).
If negative momentum breaks through the $0.07763 support level, the next level to monitor is $0.076. However, if bullish momentum prevails and the resistance level at $0.07905 is breached, the next resistance level to watch is $0.0805. The bears still had the upper hand at press time, with DOGE trading at $0.07828, a 0.60% drop.
During the drop, DOGE’s market capitalization and 24-hour trading volume fell by 0.65% and 18.79%, respectively, to $10,895,795,721 and $261,691,916.
DOGE/USD 24-hour price chart (source: CoinMarketCap)
The Keltner Channel bands are moving south, with the top band at $0.0818 and the lower bar at $0.0768, indicating that DOGE’s volatility has decreased and the price will likely move within this range in the immediate term.
As the price action moves beneath the middle bar, traders may interpret this as a bearish signal and search for potential sell opportunities. A rise above the middle bar, on the other hand, may signal a bullish mood and prompt purchase orders.
The MACD line travels south and below its signal line with a value of -0.006, indicating that the negative momentum in the market is getting stronger, and traders may consider selling their holdings to prevent significant losses.
DOGE/USD chart (source: TradingView)
The TRIX reading of -4.12 on the DOGE price chart indicates that the momentum of DOGE’s price decrease is growing, which might lead to further selling pressure and a price drop.
However, the Ultimate Oscillator reading of 40.19 indicates that DOGE is currently oversold and may experience a short-term bounce. This action raises the hopes of investors hoping to profit from DOGE’s short-term gains.
DOGE/USD chart (source: TradingView)
DOGE price drops as negative momentum takes hold, but oversold conditions may lead to a short-term bounce, offering buying opportunities for traders.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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