Dogecoin price analysis: DOGE bounces from $0.059, swift retest of $0.06 to lead lower overnight?

Dogecoin price analysis is bearish today, as we have seen a strong decline, and the previous low at $0.059 was retested overnight, followed by a quick reaction higher. Therefore, DOGE/USD has likely found another resistance at $0.06 and now looks to continue even lower.

Dogecoin price analysis: DOGE bounces from $0.059, swift retest of $0.06 to lead lower overnight? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the green over the last 24 hours. The leader, Bitcoin, gained 1 percent, while Ethereum over 1.5 percent. Meanwhile, the rest of the market has traded with close results.

Dogecoin price movement in the last 24 hours: Dogecoin tests further downside

DOGE/USD traded in a range of $0.05908 to $0.06032, indicating mild volatility over the last 24 hours. Trading volume has increased by 13.71 percent, totaling $211.46 million, while the total market cap traded around $7.96 billion, ranking the coin in 10th place overall.

DOGE/USD 4-hour chart: DOGE retest upside before another drop?

On the 4-hour chart, we can see a slight reaction higher to $0.06 during the day, likely as another lower local high will soon be set before further selling takes place later in the week.

Dogecoin price analysis: DOGE bounces from $0.059, swift retest of $0.06 to lead lower overnight?
DOGE/USD 4-hour chart. Source: TradingView

Dogecoin price action has slowly established support above $0.059 over the past week as retracement from the $0.068 previous high started to end. As a result, DOGE/USD started to move sideways, with a very narrow trading range seen at the end of September.

From there, a quick spike higher led to $0.63 resistance, where an immediate reaction lower followed. Since then, DOGE has steadily declined back to $0.059 support, where further selling stopped.

As a result, Dogecoin price action has slowly recovered and moved back towards the first resistance at $0.06. Buying pressure has slowed ever since, likely indicating that DOGE/USD will pivot back lower again over the next 24 hours and look to continue the overall medium-term retracement.

Dogecoin price analysis: Conclusion 

Dogecoin price analysis is bearish today as we have seen a strong decline over the weekend and a quick reaction higher since midnight, with the $0.06 mark acting as a resistance. Therefore, DOGE/USD should soon return lower and look to break towards the $0.058 resistance.

While waiting for Dogecoin to move further, see our articles on how to buy Litecoin, Filecoin, and Polkadot.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com 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.

Source: https://www.cryptopolitan.com/dogecoin-price-analysis-2022-10-03/