Key Insights
- Dogecoin price has plummeted intraday and lost the immediate support level of $0.20.
- The Dogecoin price may increase further soon, according to the TD Sequential buy signal.
- Strong bullish momentum is indicated by the MACD and BBP indicators, which point to ongoing upward pressure.
The Dogecoin (DOGE) price has experienced massive selling pressure since December. It has lost around 16% in the past 24 hours and slipped below an immediate support level of $0.20. The price has lost around 60% in the past three months.
At the beginning of March, the price bounced back from the support level of $0.20 and reached the 20-day EMA. However, it failed to hold the 20-day EMA and experienced strong selling pressure.
The price of Dogecoin has drawn attention from the market due to its steady rise in value. The forecast that Dogecoin may soon reach $0.5 is supported by the optimistic market outlook and current expectations.
TD Sequential Generates Buying Signal
According to analyst Ali Martinez, Dogecoin’s TD Sequential indicator is displaying a buy signal, which typically indicates that the cryptocurrency will see price growth in the upcoming weeks.
A buy signal indicates the possibility of future price growth for an asset, and the technical indicator is an essential tool for identifying trend reversals.
Notably, the TD Sequential counts bar closings that rise or fall past prior ones to indicate weakening or strengthening market trends, thereby providing a price trend signal.
When the indicator hits level 9, bullish trends start to emerge. Dogecoin’s buy signal indicates that its market value will increase in the future.
Dogecoin Price in Red Zone: Could it Decline Further?
When writing, Dogecoin crypto was trading at $0.192 which has dropped by 3.97% over the past 24 hours. The market capitalization was $28.49 Billion and the 24-hour trading volume was around $2.82 Billion.
Based on the technical chart, the DOGE price defended the immediate support level of $0.20 on March 01.
Furthermore, it formed a strong bullish and pulled the price to the 20-day EMA. However, sellers have bounced back and have dragged down the price below the $0.20 level.
Suppose the DOGE price sustains below the 0.20 level, it could be a selling opportunity. Based on the technical analysis, the price is expected to remain bearish for the next few days. Once the price sustains below this level, it could be difficult for buyers to bounce back.
On the other hand, if the DOGE price bounces back and exceeds the $0.20 mark, buyers may show interest. Once the price climbs over the key moving averages, strong buying bullish momentum can be anticipated.
DOGE Price Analysis Over Recent Fall
Dogecoin is currently facing significant selling pressure, it is now below the crucial support level of $0.20. However, the technical indicators, such as the TD Sequential, MACD, and BBP, suggest potential bullish momentum ahead. The immediate outlook remains bearish as the price struggles to regain stability.
If Dogecoin can successfully bounce back above the $0.20 mark, it may attract buyers and facilitate a potential upward trend.
Conversely, if it continues to decline, further losses could follow, presenting a selling opportunity for traders.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
