Dogecoin had one of the most bullish moves in 2021. While this meme coin was making new highs, it lacks basic strength and problem-solving ability. It has not received any support from multiple levels of support since breaking its all-time high.
The long-term support of 200 DMA was breached instantly recently. While the annual low of $ 0.0044 is still too far away, Dogecoin is still in a danger zone. Breaking through its long-term support level of $ 0.15 to $ 0.16 may set this cryptocurrency on the path to retest its yearly low.
Dogecoin price analysis
On the technical charts, DOGE shows an immense weakness, so that there are hardly any signs of a purchase. Even the MACD indicator has plunged into small waves with bandwidth as it points to May 2021 momentum. In addition, another strong support is active around the 5 cent line, which has been consistently developed as a long-term buy zone. Given these risks, we can assume that Dogecoin will only outperform to return to a bullish zone if it can break the trendline and trade above the 27 cent resistance.
It only took a month to climb to the all-time high, but it took more than two months to fall in half. However, all hope is not lost. There are still some signs of buying in less time. When Bitcoin price fell below its $ 30,000 mark, it put immense selling pressure on all cryptocurrencies.
It can be clearly seen on the hourly charts that Dogecoin has given a false breakout and is unable to repeat the momentum itself on an hourly timeframe to make a positive difference. A follow-through breakout is nowhere to be seen.
After falling from its 27 cent resistance, DOGE is in a steady downtrend towards the 16 cent line. There are some signs of a buy on the 16 cent line, but it could be a false breakout again. Hence, traders should wait for some clarity and let Doge create a more resolute breakout by trading above the trendline.
The RSI is pulling back from levels near the oversold zone. It’s slowly going up. It currently stands at 35.8, which suggests negative sentiment. A further dynamic of the DOGE can only be expected if the trend line can be broken and a positive trend can be created in a shorter period of time.
Based on our Price prediction for Dogecoin, one should keep buying in a shorter timeframe as a trend reversal is on the table. In order not to miss the reverse buying trend, you should develop at least a 10% investment strategy.