Dogecoin’s price has been sloping down in the long-term has tried to find strong support. Even though the value of Bitcoin was recovering, the value of DOGE remained restricted within a $0.09 range, at the time of press.
DOGE was trading at a value of $0.3296 with a market capitalization of $43.54 billion.
Dogecoin 12-hour chart
Source: DOGEUSD on TradingView
Dogecoin’s price consolidated between $0.2964 and $0.3822. This range has been identified as the ideal range of the price to acquire stability. Now that the market was witnessing quick corrections, this range will help DOGE during the sell-offs.
Reasoning
This range has been tested before and the price has dropped only once given the extremely high bearish momentum. However, volatility remained low with the 50 Moving average above the candlesticks. This suggested that despite the downtrend, the price was not wildly moving.
Fibonacci retracement tool highlighted consolidation taking place between 26.6% and 38.2% levels. As this price range got support from traders, Fib retracement will also assist in keeping selling pressure at bay.
The consolidation may continue as the trend was not showing signs of reversal yet. Directional Movement Index noted that -DI remained dominant which was the sign of downward pressure in the market. This pressure was strongly supported in the market as ADX remained at 21 which was a sign of trend strength.
Crucial levels
Entry-level: $0.3263
Take profit: $0.2850
Stop-level: $0.3573
Risk and Reward: 1.33
Conclusion
The current Dogecoin market was undergoing a consolidation phase. Even though volatility remained low, the price was witnessing bearish pressure and moved within a tight range. As the corrections continue, DOGE may hideout at this level, and with rising momentum, we may witness a trend change.
