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The Dogecoin price plummeted more than 4% in the past 24 hours to trade at $0.1433 at press time.
The Dogecoin Price Breaks Resistance
4-hour chart for DOGE/USDT (Source: TradingView)
As of the latest updates in the cryptocurrency market, the Dogecoin price has shown notable movements on the 4-hour chart, which may signal various trading opportunities for the keen observer. Over recent periods, DOGE has registered a downward trajectory with closing prices moving from $0.1467 to $0.14059, before slightly recovering to $0.14295. This subtle recovery hints at underlying market dynamics that traders should watch closely.
The Exponential Moving Averages (EMAs) present a bearish outlook in the short term. The 9 EMA and 20 EMA both show a descending pattern, with the 9 EMA currently at $0.14478 and the 20 EMA slightly higher at $0.14702. This configuration typically suggests that the bearish momentum is still in play, potentially exerting downward pressure on the price.
The Moving Average Convergence Divergence (MACD) further underscores this sentiment, with values indicating a negative histogram in recent data points. The latest readings show the MACD line at -0.0025 with the signal line at -0.0021, resulting in a negative histogram of -0.00039. This alignment corroborates the prevailing bearish momentum.
Meanwhile, the Relative Strength Index (RSI) points to a market that has recently moved out of an oversold condition, climbing from a low of 30.59 to a more moderate 37.75. This recovery could suggest that selling pressures are easing slightly, possibly paving the way for a stabilization or minor bullish correction in the short term.
Levels to Watch
The immediate resistance level for DOGE lies at $0.1468, closely followed by more formidable levels at $0.15015 and $0.15249. A breach above these levels could signal a shift in momentum, potentially leading to further gains. On the downside, support levels are found at $0.14252, $0.14094, and a critical level at $0.13797. A break below these could intensify selling pressures, leading to further declines.
Given the current technical setup, traders might consider short positions if the price fails to breach the immediate resistance at $0.1468, especially if subsequent price actions reaffirm resistance near higher levels. Entry points for shorts could be strategized around the $0.1460 to $0.1468 range, with potential exits before the support levels, ideally taking profits near $0.14094 or $0.13797.
Conversely, should the price demonstrate strength by closing above $0.1468 and challenging higher resistance levels, a long position could be considered. Such a strategy would aim for entry points just above $0.1468, with exits planned near the $0.15015 or $0.15249 resistance levels, depending on market strength and momentum.
As DOGE navigates these critical levels, both bearish and bullish scenarios are on the table. Traders should closely monitor MACD and RSI indicators alongside price actions at key resistance and support levels to optimize their trading strategies.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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