- Dogecoin price prints two bearish candles on Saturday after climbing to $0.0684.
- The buildup of overhead pressure at $0.0688 paints a grim picture for DOGE ahead of the new week.
- Traders should consider new entries at the 200-day SMA on the four-hour chart to long Dogecoin price.
Dogecoin price is at a critical juncture in the wake of a 22% jump in value this week. Initially, the move from support at $0.0560 saw Doge price respect a descending channel’s lower boundary.
A break above the channel defied negative economic news from the United States and the United Kingdom to close the gap to $0.0684. The largest meme token must consolidate gains at a higher level to secure a continued rally to $0.1000.
Has Dogecoin price exhausted its upside momentum?
Dogecoin price is exchanging hands at $0.0654 while bulls double down on their efforts to prevent erasing the progress made over the last few days. The Moving Average Convergence Divergence (MACD) affirms that buyers currently have the upper hand. However, further movement north would be restricted due to the decreasing trading volume.
DOGE/USD four-hour chart
Dogecoin price needs to make a four-hour to a daily close above the seller congestion at $0.0600. Otherwise, investors should start to acclimatize to an imminent pullback. The 200-day (purple) Simple Moving Average (SMA) is one of the key targets on the downside – the second being the 50-day SMA (red) at $0.0600.
It is preferable for Dogecoin price to first gather more liquidity before entering the second phase of its quest to reclaim the $0.1000 level. The IOMAP model reveals the presence of voluminous selling pressure between $0.0678 and $0.0698. Approximately 86,000 addresses previously bought 42.54 billion tokens in the range. It will be challenging for Dogecoin price to navigate through this hostile area because investors might consider offloading their bags at their respective breakeven points.
-637996095401845160.png)
Dogecoin IOMAP model
On the other hand, the on-chain reveals the lack of vital support areas, which means the gains accrued this week are in danger of being wiped out. This sentiment also calls for caution from traders – consider locking in profits when you can, remembering the bear market is not over yet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.