The DOGE price reattempts to breach the $0.152 resistance within a fortnight. However, the traders aggressively selling on higher levels reverted the altcoin below this resistance, displaying a long-tail rejection candle. As a result, the sustained selling could dump the altcoin by 7% to $0.133.
Key points:
- The OBV indicator shows a bearish divergence in the daily chart
- The 20-and-50-DAY EMA performs a bullish crossover
- The 24-hour trading volume in the Dogecoin coin is $2.1 billion, indicating a 112% gain.
Source-Tradingview
A bullish breakout from the falling wedge pattern ignited the DOGE recovery rally on March 19th. The post-retest rally soared the memecoin by 30%, hitting the $0.152 monthly resistance. However, the sellers stalled any further price rally and reverted the coin price with a high-wick rejection candle.
The DOGE price retraced 12% and retested the shared support of $0.133 and 50-day EMA. The buyers managed to rebounded from this support but still struggled to surpass the overhead resistance($1.52).
During the first half of the day, the coin price teases a bullish breakout from $0.152, with a massive pump in trading volume. However, the sellers defended this level with vigor and forced a candle to close below the resistance($0.152).
The possible reversal could resemble a double top pattern and accelerate the selling pressure with $0.122 support.
Technical indicator
The OBV indicator shares a bearish divergence concerning the recent swing high at $0.152 resistance. This divergence accelerates the possibility of a bearish reversal and fallout from $0.133
However, the DOGE price is sandwiched between the 50-and-100-day EMA, forming a short consolidation range. Moreover, the 20 and 50 EMA provides a bullish crossover near $0.133 support, strengthening the buyers’ defense from the bottom.
- Resistance levels- $0.152 and $0.167
- Support levels- $0.13 and $0.11
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/dogecoin-price-prediction-technical-indicator-signal-a-bearish-reversal-for-doge-price/