It is not exciting times for fans of the first meme cryptocurrency, as the price analysis for March 6 shows the canine coin in a steep and continuous decline for the past 72 hours.
The rapid price change from $0.1292 to $0.1210 on March 4 has seen Dogecoin‘s downward trend enter the next day with a significant decrease in value. Not much has changed as the meme coin continues its bearish move and is at $0.1221 at the time of publication.
The past 24 hours have seen the DOGE slightly rise by 1.15% and have a trading volume of $335,598 266, with a market capitalization of $16,241,888,334; Dogecoin currently sits in the 13th position among the performing digital currencies.
However, it has also shown the prospects of a price reversal as the price review shows the DOGE moving in a downward slope towards the support level.
The recent analysis of the meme token shows the market undergoing a massive negative movement, with price instability expected to shrink the market on a positive note. These events will make the price of the DOGE a bit prone to volatility on any extreme changes in the market movement.
The upper limit of the Bollinger band is currently at $0.1319, which is the most robust resistance for Dogecoin to continue in its movement, all things being equal. Alternatively, the lower limit of the Bollinger’s band is at $0.1200, indicating strong support for the meme token. Both the resistance and the support levels are what Dogecoin needed to shoot up.
DOGE/USDT 4-hour price chart. Source: TradingView
Furthermore, the DOGE/USD are shown to cross under the moving average curve, expressing a bearish trend. Price appears to be moving on a downward slope in the direction of the support to force a breakout.
As the volatility continues, the movement would favor the bulls because a sudden breakout could cause the volatility to explode, giving the bulls the upper hand to control the market.
At 35, the Relative Strength Index (RSI) indicates a low value for Dogecoin as it falls on the undervalued region of the trading chart. Additionally, the RSI metric appears to be moving downwards, pointing to a depreciating market and a high selling activity.
DOGE Market Devaluation
The declining movement of the market in the price analysis also shows how volatility on the downslope is low. As the market continues to undergo a squeeze, the resulting impact would be another volatility burst in the future. In the case of any extreme, Dogecoin is less prone to change.
The upper limits of the Bollinger’s band at $0.1485 serve as the most vital resistance zone for DOGE, while the lower limit at $0.1160 serves as the most substantial support to withstand any extreme.
The analysis for March 6 shows the price action for Dogecoin following a robust bearish movement with bullish prospects for the meme cryptocurrency and also the likelihood of a price reversal in the coming days.