Dogecoin is slightly down on its chart after showing bullish momentum. Today most of the market movers were in the red. Currently, DOGE has found support near the $0.06 region, a while ago the meme coin traded a little above the $0.07 level.
The coin’s technical analysis still suggests a chance for bulls to revisit levels above the $0.07 level. Bitcoin was also retraced in the last 24 hours and had a price of $22,000. Most Altcoins follow the same course development.
Buying power was waning on the chart, but at press time, buyers still outnumbered the market. If Dogecoin continues on its current price path, buying power will soon be replaced by selling power.
DOGE showed a recovery rally and there is always a chance of a retracement before the coin moves back up. It remains to be seen if Dogecoin will recapture higher levels, however purchasing power at this crossroads remains crucial for the meme coin.
Dogecoin price analysis: four-hour chart
Dogecoin was trading at $0.686 | on the four-hour chart Source: DOGEUSD on TradingView
DOGE was trading at $0.0686 after the slight retracement at the time of writing. The coin managed to secure its position at the $0.0600 support line. Overhead resistance for the coin was $0.0726 and it moved above where it might find some resistance at $0.0781.
If the coin gains momentum, it could even trade above the $0.0840 level. Further southbound movement can push Dogecoin to $0.0575 and then below the $0.0500 support level. Dogecoin’s trading level fell suggesting a drop in purchasing power, which is a sign of easing bullish sentiment.
Technical Analysis
Dogecoin showed a decline in purchasing power | Source: DOGEUSD on TradingView
DOGE saw a sharp decline in the number of buyers on the four-hour chart. Despite Dogecoin visiting the overbought zone, buyers failed to sustain the momentum. A slight decline in purchasing power may increase selling pressure.
The Relative Strength Index fell on the chart and was near the half-line, meaning buying pressure was easing.
Dogecoin’s price peeked slightly below the 20-SMA line, meaning that sellers could soon start driving price momentum on the chart. However, the meme coin traded above the 50-SMA and the 200-SMA, suggesting that the bullish momentum was not fading completely.
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Dogecoin presented a sell-signal on the four-hour chart | Source: DOGEUSD on TradingView
The meme coin showed signs of a change in price action on the four-hour chart. Moving average convergence divergence shows price momentum and its reversals. The MACD showed a bearish crossover and formed red histograms on the chart.
This reading is tied to a sell signal along with a flip in the current price direction. Similarly, the Directional Movement Index also shows the price movement and direction.
The DMI was negative with the -DI line above the +DI line. The Average Directional Index (Red) fell below the 40 level, suggesting that the current price trend was losing steam at press time.
Related Reading | Tesla Ruins Bitcoin Rally? Musk’s company has sold 75% of its BTC
Featured image from UnSplash, chart from TradingView.com
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