The last couple of days culminated in the price of Dogecoin entering a bullish phase, which came as a respite to both traders and investors.
In analyzing the price action of Dogecoin for March 23, it appears that the popular meme crypto has been moving into a downward trend in the past 24 hours.
The spike in price started from $0.1189 to $0.1254 on March 22, which was short-lived as the DOGE descended into a downward spiral the following day with a significant fall in value. The slump continues today, and it stands at $0.1215 as of press time.
Dogecoin was down by 1.02% in the past 24 hours. The trading volume stood at $518,653,933, and the market capitalization was $16,145,618,633, with an industry ranking of 13th among the top-performing cryptocurrencies.
However, Dogecoin has always shown the ability to reverse, no matter the negative performance. The current price review shows the cost of the DOGE token declining towards the support zone.
Recent Price Development: The 4-hour Review
The price analysis for Dogecoin points to the market moving in the negative price direction, with the market volatility expected to take a twist before closing the trading for the day. This makes the priceless susceptible to extreme changes.
As such, the upper limit of the Bollinger band is set at $0.1240, which indicates the strongest possible resistance for Dogecoin. Similarly, the lower zone of Bollinger’s band is set at $0.2280, pointing to strong support for the meme token.
As a result, the DOGE/USD seems to cross underneath the Moving Average (MA) slope, which points to a bearish price trend.
If the price volatility moved close, the bulls would have risen into action as a price breakout would release the volatility, allowing the bulls to take over control of the market.
DOGE/USD 4-hour price chart. Source: TradingView
The Relative Strength Index stands at 54, indicating a stable point for DOGE as it falls in the upper neutral zone. The score for the Relative Strength Index is moving on a downward slope, pointing to declining market pressure and imminent dominant selling action.
DOGE Market is Undergoing a Squeeze
The ongoing price analysis shows the market performing amid a bullish trend with vitality on the downside; this indicates that the market is presently in a squeeze period, which is likely a future volatility explosion, making the DOGE price free of any extreme changes.
The value of Dogecoin appears to move in the direction of the bulls, with the price of the DOGE/USD moving over the MA slope. The upward direction points to an increasing market for Dogecoin.
As the price attempts to touch the resistance barrier, any future meeting will cause a break from the market and reverse the market gains, giving the bears the upper hand.
The above analysis reveals a bullish movement and a possible bearish movement, but the market has the potential to reverse to a positive or negative trend. The bears may use the negative to control the market.