Dogecoin is in the group of altcoins that has made less noise within the crypto ecosystem for a while, especially during this crypto winter. Perhaps because of the little development that exists in his network, and because he seems to have developed a dependency on Elon Musk, who until now has always shown his support and preference for cryptocurrency.
In this environment where dogecoin has perhaps been a bit forgotten, and the market seems to show signs of coming out of the crypto winter with Bitcoin in the lead, we have analyzed DOGE, from the point of view of technical analysis, in order to reveal how it is doing. The price of cryptocurrency number 09 in the Coinmarketcap market capitalization ranking is behaving.
First of all, Looking at the monthly chart we can see that currently the bearish momentum predominates. The continuous movement of the price in the zone of 0.05-0.10 USD during the last 4 months, has been continuously marked by the pressure or resistance exerted by the 20-week moving average, therefore at the macro level, until the resistance exerted by that moving average is overcome, there will be no change in trend.
Source: Tradingview DOGE 1M
In addition, on the weekly chart can be evidenced to this day, the continuation of a downward trend that began in May 2021, when it reached its all-time high (0.7399 USD). In this sense, the movement of the moving averages is accompanied by a lot of noise, generating a disorder in them and positioning itself above the price at the same time that it acts as resistance.
Source: Tradingview DOGE 1W
For now, in the short term, if the downtrend continues, the important price areas that should be taken into consideration are: 0.69, 0.62, and 0.55 USD, all key price supports in previous weeksand that if the first two break, the price reaching the last one and respecting it could mark the beginning of a range as happened in the middle and end of 2022.
Source: Tradingview DOGE 1W
Instead, if it takes a brief turn, increasing the price of the cryptocurrency, the key resistance to break before hitting the 20-week moving average will be at $0.78.
Finally, with respect to the daily chartwe can see that in this, the 20-day moving average is currently supporting the price in a current formation that, together with the 200-day moving average, is generating a price contraction within a clearly indecision zone, especially due to be located right between the highest and lowest point of the price so far this year.
Source: Tradingview DOGE 1D
Having said that, the picture is not very clear for Doge at the moment. There are many tests in the price action that must be overcome, the market does not seem to be exactly looking at this cryptocurrency and the macroeconomic scenario is complex that in the face of any fall or setback that bitcoin may present, Doge, like surely the other altcoins , will continue that retracement causing its downtrend to be much more pronounced.
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