The March 27 price analysis for Dogecoin appears bearish with another high experienced after a rapid spike above the previous $0.14 resistance zone.
Analysts forecast another retracement for DOGE/USD to establish more of the higher lows to aid with further price consolidation.
In the past 24 hours, the price action has shifted to the green line, with the leading digital currency, Bitcoin, gaining a merely 0.35% increase, followed by Ethereum with 0.41%. Dogecoin falls into the category of the top-performing cryptos, with nearly 7% gained within the same period.
DOGE Price Movement
The DOGE/USD changes hands within $0.1319-$0.1424 suggesting another substantial volatility in the period under consideration.
However, the trading volume was up by 15.89%, raising $944.2 million for Dogecoin; the combined market capitalization trades at $18.66 billion during the same period leading to the consolidation of DOGE’s 12th place.
Market cap performance is an assessment of the current performance indices of cryptocurrencies, and DOGE appears to be among the top performers in terms of market valuation.
Is DOGE About to Retrace?
The 4-hour chart shows the price action for Dogecoin encountering some form of resistance again; the $0.143 price level is yet another indication of retracement in the next trading action.
DOGE/USD 4-hour chart. Source: TradingView
Furthermore, the price action for Dogecoin has seen more recovery taking place more than once within this week. Upon ending the previous week at the $0.118 support level, a significant rally of about 20% circled the DOGE/USD pair alongside the price mark of $0.14 on March 24.
A strong reaction followed, which went into the lower zone, thereby establishing a higher low at $0.13, giving bulls the chance to be ready to mount another push higher again. This paved the way for another upside at $0.14 as the barrier was breached with another rapid upward move.
But, not much of a higher push can be attained before sellers return to the trading floor for another round of transactions. In the early hours of the day, the price action of Dogecoin was rejected at $0.143; this implies that another higher low is needed.
Considering the pattern of quick higher movement of the pair this week, it is not surprising that the bulls have used all their energy and more consolidation needs to be achieved.
The beginning of next week might likely depict selling pressure returning regardless of the market bullish behavior in previous weeks.
Overall, the price prospect of Dogecoin has appeared bearish in the current analysis, as rejection for further upward movement above the $0.14 mark failed to materialize.
Therefore, the DOGE is not prepared to proceed higher, and further retracement to set a higher low is needed to kickstart another breakout in the coming week. The Bulls may attempt to make a comeback in this scenario.
Although expecting Dogecoin to move further up the resistance zone is realistic, the present market situation points to a bearish state requiring further effort from the bulls to make a positive rebound.