- Dogecoin forming double top pattern, trading near the demand zone
- DOGE slipped below 50 day and 200 day ema indicates bearish trend reversal on a higher time frame.
Dogecoin had tried multiple times to sustain higher levels but sellers kept on dominating the higher levels. As per coinglass, DOGE/USDT futures 24 hours long buildup at 42.92% whereas short build up at 57.06% shows sellers are more as compared to buyers. Currently, the DOGE is trading positive with gains of 2.34% on a intraday basis and 24 hour volume to market cap ratio stood at 0.0824
Will the DOGE take support at the demand zone ?
On a daily time frame, it is visible that DOGE has been a favorite meme coin of speculators as it has given some wild swings in the past couple of months with a higher volume and later got dumped badly. In the end of October, Dogecoin jumped almost 144% in just one week, hitting highs at $0.15893 and in the next week it dumped down and lost all its previous gains.
In the mid November, prices got some momentum and reclaimed both the 50 and 200 day ema but again it acted as a trap for bulls and got rejection form $0.11072. Currently, prices are back to their lower levels and trading near the demand zone of $0.07085.
The 50 day ema may negatively cross the 200 day ema which will confirm the short term trend reversal on downside but sellers may stay cautious because, as per DOGE price history it is highly speculated crypto and may again attempt to bounce back from the demand zone.
The closer Outlook
On a lower time frame, DOGE picture is similar to higher timeframe and had been trading in a short term downtrend. The super trend indicator had generated a sell signal and red line continuously trailing down indicates trend to remain weak till prices are trading below red line but Luckily, prices are approaching support zone and if bulls able to defend demand zone at $0.07085 we may see relief rally in comings weeks but probability of rally is slite low, due to negative environment in crypto industry. On the lower side if prices slipped below support zone of $0.07085, bear may to took control and drags the price more lower towards $0.06280
Dogecoin has been a favorite of speculators and multiple times prices are rallied from the demand zone which proves buyers are active on lower levels, but as per price analysis, short term trend and momentum both are downside so, traders may look for sell on rise opportunity until we see any sustainable reversal on prices.
Resistance levels : $0.11072 and $0.14789
Support levels : $0.7085 and $0.06280
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.