Popular meme coin, Dogecoinrecently faced a rejection at a significant resistance level of $0.1293. This setback led the crypto asset to start a fresh downward move towards its previous low of $0.0914. As DOGE failed to break above the $0.1293 barrier, it led to speculations among market participants about the digital asset’s next move.
In this article, we will examine DOGE’s post-rejection price action with the help of technical indicators to determine what this rejection could mean for the crypto asset in the near future.
DOGE price is currently trading around $0.121 and is up 1.85%, with a market cap of over $17 billion and a trading volume of over $1 billion at the time of writing. In the last 24 hours, its market cap and trading volume have increased by 1.83% and 73.09%, respectively.
Recent Market Performance: Analyzing DOGE Price Action
Dogecoin price on the 4-hour chart is currently trading below the downtrend line and has fallen into bearish momentum following the rejection at $0.129 above the 100-day simple moving average (SMA). Based on these current price actions, the digital asset may be poised to maintain its downtrend feeling and could potentially extend its bearish move towards the $0.1144 support level.
The formation of the 4-hour composite trend oscillator also suggests a potential bearish continuation for the crypto asset as the signal line has crossed below the indicator’s SMA in the overbought zone, attempting to break out of this zone.
On the 1-day chart, the DOGE price is falling rapidly after failing to break above $0.129 and the 1-day downtrend line. It can be observed that the crypto asset is still trading below the 100-day SMA and is currently attempting a bearish move towards the $0.114 support level with strong bearish momentum.
Finally, it can be observed that the signal line and the SMA are trying to break out of the oversold zone. However, this may just be a short-term note as prices may start to decline again, thus signaling further bearishness for DOGE.
Potential Support Levels: Where Could Dogecoin Find Stability?
As of now, Dogecoin is attempting a bearish move towards the $0.1144 support mark. If the crypto asset breaks below this level, it will continue to fall towards the $0.0914 support level. A break below this level could trigger more losses for DOGE to test the $0.0745 level and other lower levels.
However, if the DOGE price hits the $0.1144 support level and faces a rejection, it will start rising towards the $0.129 resistance level. The crypto asset could mount a fresh rally towards the $0.1491 resistance level and other higher levels if there is a breach above the $0.129 resistance level.