Even after the June 2021 Bloodbath, DOGE price never broke the support area at $0.155. This new year, however, the bears finally made this leap and dropped the price below this bottom support. The price is currently trying to sustain below this $0.155 level, which could lead to a further rally of the coin.
Main technical points:
- DOGE price faces strong resistance from the 20-day EMA
- DOGE intraday trading volume is $1.59 billion, showing an increase of 132.9%
Source-BILLIONradingview
In our previous coverage of Dogecoin In technical analysis, the coin price teased a bullish breakout of a double bottom. However, the price failed to break above the resistance trendline and resulted in a retracement and drop below the mid-$0.16-$0.155 support area.
Currently, the price shows a higher price rejection from the support area reflecting a retest of the bearish breakout.
The technical chart shows that the important EMAs (20, 50, 100 and 200) are sloping downwards, indicating a downtrend. Moreover, the 20 and 50 EMA mainly rejected the bullish pullbacks in this downtrend.
The Relative Strength Index (37) points to bearish sentiment among market participants.
Retest brings fundamental bearish momentum past bullish breakout
The source- Tradingview
The DOGE price action shows an immediate formation of a bearish candle right after the price hits the resistance trendline. Therefore, the price action indicates a successful retest of the bearish cycle.
The ADX (48) recovers from a sharp drop in the downtrend momentum caused by a sudden bull run. However, a reversal after a retest of the downtrend setup and bullish momentum can be seen shortly.
The traditional axis shows key resistances in the DOGE/USD chart at $0.156, followed by $0.168. Meanwhile, the support levels are at $0.138 and $0.127.