Despite volatility shaking the top two cryptocurrencies – Bitcoin and Ethereum, some coins have remained unaffected. Dogecoin [DOGE] has been one such coin that has been making large moves owing to the hype in the market.
DOGE retested its all-time high at $0.44 but collapsed thereafter. With a market capitalization of $26.88 billion DOGE was listed eighth on the CoinMarketCap list and was being traded at $0.2383.
Dogecoin [DOGE] 4-hour chart
Source: DOGEUSD on TradingView
The above chart of DOGE showed the price of the digital asset moving higher in April. The rally that began as a part of the hype carried DOGE’s price 605% to hit an ATH at $0.44. The price was since consolidating between $0.2523 and $0.44. However, on 22 April, the asset lost support at $0.2523 and dropped as low as $0.1552.
As the coin recovers, the traders appeared to be divided about its future.
Reasoning
Bollinger Bands were diverging as the price was being pushed and pulled by the traders. The growing volatility in the market could help escalate the price swing that may make its way in the contentious DOGE market. The signal line has moved above the candlesticks. It has also been acting as immediate resistance for DOGE and remained close to $0.30.
As the price dropped, DOGE quickly jumped closer to the oversold zone as holders began to realize their profits till it was at a higher value. As buyers were once again gaining ground, RSI had taken a U-turn and moving away from the oversold zone. Meanwhile, the momentum has been siding with the bears as it has flipped to the negative side.
Conclusion
The current DOGE market showed that the digital asset was stumbling through the levels of support and was trying to breach the $0.2523 level. Despite the buyers pushing the price higher, the market was still bearish.
