What is the current state of DOGE price after Elon Musk added the Dogecoin logo to his Twitter profile and started a sharp rise? Will the decline continue? Details in our article…
Dogecoin (DOGE) Price Analysis
Despite a strong rise that brought Dogecoin (DOGE) price to its highest level in 90 days at $0.105, breaking resistance was difficult. After the bulls’ enthusiasm faded, bears took control of the market and lowered the price to its lowest level in 24 hours at $0.09272, where support was provided.
Support levels to be followed in Dogecoin price are $0.08923 and $0.08567, respectively. However, if buyers can raise the price above the $0.1026 resistance level, they should follow the $0.1069 and $0.1104 levels.
DOGE/USD 4-hour chart Source: TradingView
In the 4-hour price chart of DOGE, the Bollinger bands are rising and expanding, indicating that the downward momentum of DOGE is decreasing and a trend reversal is possible. This optimism is due to the flattening of the upper band (0.1070$), which indicates that the price has reached a resistance level, and the rise of the lower band (0.0712$), which indicates that the support level has strengthened.
However, since the Fisher transformation fell below the signal line with a value of 0.67, the reversal of the rise may not have been confirmed yet, and traders should wait for additional confirmation before taking any long positions. This transition indicates that the momentum is still in a downward trend and there is significant downward risk if the price falls below the lower Bollinger band.
DOGE/USD 4-hour chart Source: TradingView
The Money Flow Index (MFI) on the DOGE price chart is 82.60, indicating that the downward momentum may decrease and a positive trend may form. This expectation is due to the MFI monitoring buying and selling pressure, and a score of 80 or higher indicating an overbought market that can often lead to a reversal in prices.
The Rate of Change value of 0.83 indicates that the bearish rule in DOGE is losing momentum and a trend reversal may be possible in the near future. However, the Relative Strength Index (RSI) with a value of 65.37 has recently fallen below the signal line, indicating a downward trend.
This movement indicates that DOGE price may face short-term downward pressure before any potential reversal occurs. As Dogecoin faces resistance, cautious investors are making profits while technical indicators show a possible trend reversal on the horizon.
