Will Dogecoin dip into local support as the coin trades side-by-side?

As soon as Dogecoin broke out of its rising parallel channel, it started to lose value. Currently, Dogecoin is trading late. Over the past 24 hours, DOGE gained 0.3%, confirming that the coin was stuck in a stable price area.

Last week, Dogecoin gained close to 4%. The technical outlook for Dogecoin price shows that bearish momentum has been established. The demand and accumulation of MemeCoin decreased when it started trading sideways.

meme coin noted a rebound in price after breaching the $0.88 resistance level. Over the past few days, Dogecoin has seen a significant influx of buyers. However, selling pressure has increased at press time.

Overall, memecoin has a bullish structure as it has managed to hold its price above the 200-simple moving average line. In the short time frame, Dogecoin may pull back near the $0.74 level before further recovery or fall in price. DOGE’s market capitalization declined slightly, indicating increased selling pressure on the chart.

Dogecoin Price Analysis: One Day Chart

Dogecoin
Dogecoin was priced at $0.81 on the one-day chart. Source: DOGEUSD on TradingView

DOGE was trading at $0.81 at the time of writing. The coin corrected itself after reaching the $0.88 price level. Immediate resistance for MemeCoin was $0.87, which was near the 61.8% Fibonacci retracement level. A move above the $0.87 mark could push DOGE to the $0.104 resistance mark.

On the other hand, if Dogecoin fails to stay above the $0.74 support level, it could fall to $0.66. If demand increases slightly, it is unlikely that Dogecoin will break below the $0.74 price floor. The volume of Dogecoin traded decreased in the last session, indicating that buying pressure has eased.

Technical analysis

Dogecoin
Dogecoin noted a decline in buying power on the one-day chart Source: DOGEUSD on TradingView

MemCoin has shown a drop in demand as buyers have started to decline on the daily chart. The Relative Strength Index (RSI) pulled back after approaching the 70 mark, indicating more buyers than sellers. This indicates that the meme coin was correcting itself at press time.

The RSI, however, remained above the 50 mark, indicating that buying power outweighed selling power. Dogecoin’s price was above the 20-Simple Moving Average (SMA), indicating that buyers are controlling price momentum in the market.

It was also above the 50-SMA (yellow) and 200-SMA (green) lines, indicating bullishness. However, the coin formed a death cross where the 200-SMA line crossed the 20-SMA line. Death Cross is accompanied by a significant reduction in price.

Dogecoin
Dogecoin has shown buy signals on the one-day chart. Source: DOGEUSD on TradingView

meme-coin continued to show buy signals on the one-day chart. Moving Average Convergence Divergence, which indicates price momentum and trend reversal, is shown by the attached green signal bars for buy signals.

These green histograms were shrinking, indicating that this might not be a good time to buy the asset. In response to this, the Bollinger Bands that suggest volatility have been separated, which means that the price will move significantly in the next trading session.

Featured image from UnSplash, charts from TradingView.com

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