Dogecoin price analysis: DOGE maintains strong position amidst 3 percent decline

TL;DR Breakdown

  • Dogecoin declined over 3 percent on the intra-day market
  • Trading volume dropped over 28 percent
  • Price remains above 20-day moving average with a strong RSI

Dogecoin price analysis for the day shows a declining position for the token. DOGE fell more than 3 percent on the intra-day trade, with trading volume falling over 28 percent. However, price remains above the 20-day simple and exponential moving averages, suggesting there is substantial bullish momentum in the token. After rising as high as $0.27 earlier in the week, the meme cryptocurrency has faced a slight correction with price hovering within the pivot region of $0.236 and $0.254. According to technical indicators, Dogecoin is set for a consolidation period after rising from $0.205 on October 4, with potential for a breakout up to the resistance at $0.279.

The larger cryptocurrency market followed Dogecoin’s trend in large scale declines. Only Bitcoin gave a positive outlook, increasing almost 2 percent to settle just below $55,500. Ethereum went down a single percent to stay above $3,500, while Altcoins also fell into the red zone. Cardano, Polkadot and Solana all decreased around 1.5 percent, to sit at $2.24, $35.89, and $154.28, respectively. Like Bitcoin, Ripple also moved up a percent to $1.17.

Dogecoin price analysis: DOGE maintains strong position amidst 3 percent decline 1
Dogecoin price analysis: Cryptocurrency heat map. Source: Coin360

DOGE/USD 24-hour chart: Price declines but shows positive technical indicators

On the 24-hour chart, Dogecoin can be seen declining in terms of price, but stays positive in view of technical indicators. Price fell more than 3 percent on the day with trading volume dropping 28 percent. However, price still remains above the 20-day exponential moving average (EMA), suggesting that a significant turnover hasn’t taken place since the price decline started yesterday. The Relative Strength Index (RSI) also shows a strong value of 52, indicating a valued status of the token.

Dogecoin price analysis: DOGE maintains strong position amidst 3 percent decline 2
Dogecoin price analysis: 24-hour chart. Source: Trading View

DOGE/USD 4-hour chart: Bearish outlook presents worrying sight

On the 4-hour chart, Dogecoin price analysis presents a worrying outlook. Price can be seen dipping over the last few trading sessions and moving below the moving averages. The RSI value is also at a bearish state of 46.19. The Moving Average Convergence Divergence (MACD) line continues below the neutral zone at just above 0.00. All technical indicators point towards a continuing decline for DOGE, which could go as low as $0.22 over the next trading session if buyers do not enter the market by close.

Dogecoin price analysis: DOGE maintains strong position amidst 3 percent decline 3
Dogecoin price analysis: 4-hour chart. Source: Trading View

Dogecoin price analysis: Conclusion

In conclusion, Dogecoin still carries enough bullish momentum to consolidate well above support at $0.21, even though price has declined over 3 percent on intra-day trade. The 24-hour indicators show a consolidation period for DOGE. However, the short-term indicators suggest a bigger decline towards support at $0.214 is on the cards. In current trend, buyers may come into the market late and stop the expected decline. However, any movement below $0.231 would present cue for a bear run to set in for Dogecoin.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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