Dogecoin price analysis: DOGE retests $0.058 previous low, ready for a further selloff?

Dogecoin price analysis is bullish today as we have seen a strong drop past the $0.058 previous support and a new low found at $0.056 for now. From there, DOGE/USD has quickly retraced and reacted at the previous low, indicating that selling should soon continue.

The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 3.28 percent, while Ethereum over 4 percent. The rest of the top altcoins have followed with even worse results.

Dogecoin price movement in the last 24 hours: Dogecoin sets a strong low at $0.056

DOGE/USD traded in a range of $0.05618 to $0.06004, indicating strong volatility over the last 24 hours. Trading volume has increased by 81.27 percent, totaling $360.34 million, while the total market cap trades around $7.62 billion, ranking the coin in 10th place overall.

 

DOGE/USD 4-hour chart: DOGE fails to breach $0.058?

On the 4-hour chart, we can see the Dogecoin price posting a reaction lower, likely indicating further downside will soon follow.

Dogecoin price action has traded with strong selling pressure over the past week. After the first decline from the $0.065 resistance, DOGE/USD rapidly declined all the way to the $0.058 previous major support.

Recovery followed later in the week, with a rally as high as the $0.0625 mark. However, bullish momentum ended there, meaning that a clear lower high was set. As a result, DOGE returned back below $0.061 before a massive drop lower followed overnight to today.

Dogecoin price action lost over 10 percent until support was found at $0.56. From there, DOGE/USD has posted a quick reaction higher to retest previous lows as resistance. For now, the resistance holds, indicating that further selling should soon resume.

Dogecoin price analysis: Conclusion 

Dogecoin price analysis is bearish today as we have seen a quick retest of previous support as resistance and further upside rejected over the past hours. Therefore, we expect DOGE/USD to decline even further overnight, likely as the newly set low will be retested.

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