Disclaimer: The findings in the following discussion are the sole opinions of the author and should not be considered investment advice.
Dogecoin hasn’t gotten a lot of attention from investors lately. His monthly ROI was a moderate 18%. And, even though it was on par with Bitcoin and Ethereum, it pales in comparison to other alts in the top 10.
On the charts, a breakout of the rising wedge was responsible for a huge red candle that could lead to big losses in the coming days. At the time of writing, DOGE was trading at $ 0.286, down 10% in the past 24 hours.
Dogecoin 4-hour chart
Dogecoin’s recent move can be distinguished by two patterns on its chart. The dotted lines highlighted a falling wedge that led to a northbound breakout. While DOGE seemed willing to target higher levels, a rising wedge setup played a killjoy and led to a 10% selloff.
Some support lines at $ 0.283, $ 0.270 and $ 0.265 took center stage. Additionally, the 4-hour 200-SMA (green) could also spur some market buying. Once the price recovers, the August 16 high of $ 0.35 will be the target as buyers will look to challenge the all-important resistance at $ 0.447.
In contrast, the cutoff level for buyers was $ 0.232, a level from which sellers can initiate further pullbacks.
The 4-hour RSI headed into the oversold zone for the first time in a week due to selling pressure in the market. Based on the index, some more short-term losses seem likely until a reversal can be expected. The MACD and the Directional Movement Index showed sell signals after recording bearish crosses.
It is also interesting to note that each of these indicators was also in danger of falling below its half lines on the daily chart. If an unfavorable outcome occurs, DOGE will remain vulnerable to extended losses up to $ 0.232. This would mean another 20% decrease in the DOGE print time level value.
Before attempting a comeback above $ 0.35, Dogecoin needs to calm the prevailing selling pressure around $ 0.283- $ 0.265.
A close below the latest price level would carry the threat of a broader sell-off to monthly lows of $ 0.232. Meanwhile, a broader market uptrend could be the missing key to a brief revival of the DOGE market.
This is a machine translation of our English version.
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