Over the past week, Dogecoin has experienced a steep price decline, losing 15% of its market value. Similarly, the past 24 hours have seen the digital meme token drop 0.7%. As a result, the price action indicates a range-bound movement that will consolidate the price and fall below the support zone if it continues.
Should the bulls attempt a price rally, this could drive the price of the altcoin high and make it trade above the resistance level.
Since the broader crypto market bloodbath occurred, the value of altcoins has fallen significantly. However, the technical indicators for the meme coin price action show a good chance of the bulls overpowering the bears subject to buyers’ cooperation.
The bulls will still find it challenging to break out of the overhead due to a lack of buyers. Despite the recent 4% rise in the price of Dogecoin, the bulls could not sustain the tempo.
Dogecoin Four-Hour Price Review
At the time of writing, the meme token was trading at $0.068 after dropping from the $0.071 price mark. Sellers here were responsible for the price slump because of the high demand for the coin at low value.
In the meantime, the overall resistance for DOGE is placed at the $0.070 mark. If a price movement is above that level, $0.072 would be the next resistance level. Moreover, the closest support level for the coin is $0.056. In addition, a fall in the trading volume of Dogecoin will trigger selling pressure.
Technical Outlook
Due to the fall in demand, buyers have been leaving the network for some time. However, this may be a temporary phenomenon as other indicators appear positive from the technical point of view.
Furthermore, the relative strength index (RSI) is moving southward, showing sellers are about to take charge of the trading floor.
On the other hand, the price of Dogecoin is breaking out of the 20-SMA line. This means that buyers’ activities push the buying momentum. A massive buyer action within the current price range will accelerate the price movement to the next session.
The above analysis could be a good opportunity for buyers to key in and control the trading floor.
The popular meme cryptocurrency, like most altcoins, has been on a decline for most of the year. The occasional price surge did little to spark a sustained bullish trend.
Meanwhile, the last few weeks of the year can see the broader market regain momentum.
