{"id":27898,"date":"2022-09-03T08:46:37","date_gmt":"2022-09-03T08:46:37","guid":{"rendered":"http:\/\/egrowonline.com\/?p=27898"},"modified":"2022-09-03T08:46:37","modified_gmt":"2022-09-03T08:46:37","slug":"losing-this-level-could-see-dogecoin-drop-swiftly-to-0-048","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=27898","title":{"rendered":"Losing this level could see Dogecoin drop swiftly to $0.048"},"content":{"rendered":"


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Disclaimer:\u00a0The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.<\/em><\/p>\n

Dogecoin [DOGE]<\/a> has been in a downtrend since November 2021. The downtrend has been interspersed with swift rallies of double-digit percentage gains. One such rally for DOGE in the past month, when DOGE climbed nearly 50% from the $0.059 low to reach the $0.087 high in August.<\/p>\n

At press time, Dogecoin sat precariously in a demand zone. The longer timeframe market structure was bearish for Dogecoin, and Bitcoin<\/a> showed weakness on the charts as well.<\/p>\n

DOGE- 1-Day Chart<\/h4>\n
\"Dogecoin\"Dogecoin<\/a><\/p>\n

Source: DOGE\/USDT on TradingView<\/p>\n<\/div>\n

The movement of Bitcoin always has a strong impact on the performance of altcoins. Dogecoin and similar meme coins have a tendency of popping off near the end of a Bitcoin rally and crash harder than Bitcoin.<\/p>\n

This appeared to have happened in mid-August when BTC\u2019s move to $24k topped out but DOGE still had the stead to push from $0.07 to $0.085.<\/p>\n

At press time, DOGE traded at $0.062 and was within a zone of demand from July. Based on price action, a move to $0.07 appeared plausible.<\/p>\n

The liquidity in the $0.06 pocket can be tested by another wick downward, but so long as the price does not close a daily session below $0.057, there was a chance of a move upward.<\/p>\n

This idea gains some credibility when we consider the fact that July and a good part of August saw DOGE range between $0.063 and $0.07.<\/p>\n

Yet, Bitcoin faces stiff resistance at $20.4k and $20.8k. If BTC can climb past these levels, Dogecoin might be able to gather the impetus for a move upward.<\/p>\n

Rationale<\/h4>\n
\"Dogecoin\"Dogecoin<\/a><\/p>\n

Source: DOGE\/USDT on TradingView<\/p>\n<\/div>\n

The indicators showed some bearish bias for DOGE. The Relative Strength Index (RSI) slipped beneath neutral 50 in the past two weeks, to highlight bearish momentum on the daily timeframe.<\/p>\n

The On-Balance Volume (OBV) did not see a sharp drop. In fact, the OBV also stood at a level of support that has been respected in the past few months. The Chaikin Money Flow (CMF) has shown intense selling pressure throughout August.<\/p>\n

The Bollinger Band (BB) Width indicator was also on the rise. The indicator reflects the recent surge in volatility following DOGE\u2019s drop from $0.085.<\/p>\n

Conclusion<\/h4>\n

If the OBV is unable to hold on to the support level in the next week or two, DOGE might be set to witness a sharp drop beneath $0.057. The $0.062 level has been important in February and March of 2021. Losing this level could see DOGE drop swiftly to the $0.048-$0.05 zone.<\/p>\n

This downward move hinges on Bitcoin falling on the price charts. The $19.2k-$19.6k is a region BTC bulls would want to see defended.<\/p>\n<\/p><\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Disclaimer:\u00a0The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice. Dogecoin [DOGE] has been in a downtrend since November 2021. The downtrend has been interspersed with swift rallies of double-digit percentage gains. One such rally for DOGE in the past month, when DOGE climbed nearly […]<\/p>\n","protected":false},"author":1,"featured_media":27899,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[46],"tags":[85,1371,664,1917,2856],"class_list":["post-27898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dogecoin","tag-dogecoin","tag-drop","tag-level","tag-losing","tag-swiftly"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/09\/PP-2-DOGE-cover-1000x600.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/27898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27898"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/27898\/revisions"}],"predecessor-version":[{"id":27900,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/27898\/revisions\/27900"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/27899"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27898"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}