Dogecoin (DOGE) Price Falls Below 21-day SMA, but Long-term Outlook Remains Bullish
The price of Dogecoin (DOGE) has dropped below the 21-day Simple Moving Average (SMA) after facing resistance at $18. Despite this setback, the long-term outlook for DOGE remains bullish.
Previous Price Action
In previous price action, DOGE experienced an uptrend and reached a high of $0.20 on March 5. However, it faced a price war between bulls and bears, resulting in a sharp decline. The bulls eventually bought the dips, leading to an upward correction. Currently, DOGE is in a sideways trend below the resistance level of $0.18.
However, the buyers were unable to push the altcoin to its previous high as they were rejected at $0.18. As of now, DOGE is trading below the 21-day SMA but remains above the 50-day SMA. Its current value is $0.14.
Possible Scenarios
If the selling pressure continues, DOGE may fall further towards the low above the 50-day SMA ($0.11). On the other hand, if the current support at $0.14 holds, DOGE could potentially return to its previous high by breaking above the 21-day SMA.
Dogecoin Indicator Reading
DOGE has been moving between the moving average lines and will likely continue fluctuating until it breaks above these lines. Currently, on the 4-hour chart, DOGEโs price bars are below the moving average lines.
Technical Indicators
- Key resistance levels: $0.12 and $0.14
- Key support levels: $0.06 and $0.04
Whatโs Next for Dogecoin?
DOGE is currently falling below the moving average lines but finding support above the $0.135 level. On March 5, DOGE retested its current support level of $0.135, and the bulls stepped in to buy the dips. Currently, DOGE is gaining value and attempting to resume its uptrend above the existing support level. However, if it loses this support, DOGE may experience further depreciation.
๐ฅ Hot Take: Long-term Outlook Remains Bullish for Dogecoin ๐ฅ
The recent drop below the 21-day SMA may be a temporary setback for Dogecoin (DOGE), but the long-term outlook remains bullish. Despite facing resistance at $18, DOGE has shown resilience and has found support above the $0.135 level.
If DOGE can maintain this support and break above the 21-day SMA, it has the potential to return to its previous high of $0.20. However, if selling pressure persists and DOGE falls below its current support, it may experience further decline.
Traders and investors should closely monitor DOGEโs price action and watch for any breakouts or breakdowns from key levels such as $0.14 and $0.18. Technical indicators can provide valuable insights into market sentiment and potential price movements.
Remember to conduct your own research and analysis before making any investment decisions in the volatile cryptocurrency market.
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