Bears on the Dogecoin (DOGE) market have been successful over the course of the last day, with bullish attempts to reclaim ground encountering resistance at the day’s high of $0.07574.
When the bulls could not break through the barrier, the price of DOGE fell to an intraday low of $0.07366. As of this writing, the price has fallen 1.77% to $0.07412 due to bearish pressure.
Trading activity decreased due to the bearish trend and poor investor confidence. The decreased demand for cryptocurrencies adds to the downward pressure on the price. Market capitalization plummeted to $9,831,710,335, and 24-hour trading volume dropped to $244,899,342 as investors exited the market expecting more price declines.
DOGE/USDT 24-hour price chart (source: TradingView)
The negative trend line in the DOGE/USDT price chart suggests a clear downward trend, and the price may continue to decrease since the Aroon up reading is 7.14%, and the Aroon down reading is 42.86%.
This trend might be a good opportunity for short sellers or a warning signal for long traders. This move implies a negative trend, and traders and investors should reconsider their strategies in light of the market’s trajectory.
ATR values of less than 0.0020 and lower suggest the bears’ dominance and a tendency toward decreased market volatility. Traders may consider putting stop-loss orders and monitoring critical support levels to protect their investments.
DOGE/USDT 4-hour price chart (source: TradingView)
Given that the Relative Strength Index (RSI) is going below its signal line at 27.49, the bearish momentum in DOGE/USDT is accelerating. Traders may look for short positions to capitalize on the unfortunate trend.
Conversely, they may shut out their bullish positions to avoid losses. Yet, since this level implies that the market has been oversold, some traders may want to buy back in to take advantage of cheaper pricing.
The blue MACD line, with a value of -0.00139, moves in the negative zone, indicating the present bearish momentum. Yet, it may imply a possible trend reversal since it crosses over its signal line pointing north, and its histogram is trending upward. Since false signals sometimes occur, traders may want confirmation before entering trades.
DOGE/USDT 4-hour price chart (source: TradingView)
The downward trend of DOGE maintains its momentum, which contributes to low trading volume and low investor confidence. Traders have to rethink their approach and keep a close watch on the various support levels.
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