Popular meme coin Dogecoin recently faced rejection at the significant resistance level of $0.1293. This failure caused the crypto asset to start a fresh downward move towards the previous low of $0.0914. With DOGE failing to break through the $0.1293 barrier, it led to speculation among market participants about the next move of the digital asset.
In this article, we will analyze DOGE’s price action following the rejection using technical indicators to determine what this rejection could mean for the crypto-asset in the near future.
DOGE is currently trading at around $0.121 and is up 1.85% with a market cap of over $17 billion and trading volume of over $1 billion at the time of writing. Over the past 24 hours, the market cap and trading volume are up 1.83% and 73.09% respectively.
Latest Market Performance: DOGE Price Action Analysis
Currently, Dogecoin price on the 4-hour chart is trading below the bearish trendline and has lost bearish momentum after a rejection at $0.129 above the 100-day straightforward moving average (SMA). Based on this current price action, the digital asset could be poised to maintain its bearish sentiment 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 continuation of the downside in the crypto asset market as the signal line has crossed the indicator’s moving average in the overbought zone, attempting to break out of the zone.
On the 1-day chart, DOGE price is falling sharply after failing to break above $0.129 and the 1-day bearish trendline. It can be seen 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 robust bearish momentum.
Finally, you can see that the signal line and SMA are trying to break out of the oversold zone. However, this may only be short-lived as prices may start to fall, signaling more bearishness towards DOGE.
Potential Support Levels: Where Could Dogecoin Find Stability?
At the moment, Dogecoin is attempting a bearish move towards the support at $0.1144. If the crypto asset breaks below this level, it will continue to decline towards the support at $0.0914. A break below this level could result in more losses for DOGE to test the $0.0745 level and other lower levels.
However, if DOGE price reaches the $0.1144 support level and encounters a rejection, it will start rising towards the $0.129 resistance level. The crypto asset could pose further upside towards the $0.1491 resistance level and other higher levels if there is a breakout above the $0.129 resistance level.
