Dogecoin Retraced On Its Chart, Is There Chance Of An Uptrend?
July 21 2022 - 9:00PM
NEWSBTC
Dogecoin slightly receded on its chart after displaying bullish
momentum. Today most of the market movers were seen in the red.
Currently, DOGE has found support near the $0.06 region, a while
back the meme-coin had traded a little above the $0.07 price mark.
The technical analysis of the coin still points towards a chance of
bulls reclaiming levels above the $0.07 mark. Bitcoin too retraced
over the last 24 hours and was priced at $22,000. Most altcoins
follow the same price trajectory. Buying strength faded on the
chart but buyers still outnumbered sellers in the market at press
time. If Dogecoin continues on its present price trajectory then
soon buying strength will be replaced by selling strength. DOGE
displayed a relief rally and there is always a chance of
retracement before the coin again moves on the upside. It is to be
seen if Dogecoin reclaims higher levels, however, buying strength
remains crucial at this junction for the meme-coin. Dogecoin Price
Analysis: Four Hour Chart DOGE was trading at $0.0686 after the
slight retracement as seen at the time of writing. The coin has
managed to secure its position on the $0.0600 support line. The
overhead resistance for the coin was at $0.0726, moving above which
it could witness some resistance at $0.0781. If the coin picks up
momentum then it could even trade above the $0.0840 mark. Further
southbound movement, can push Dogecoin to $0.0575 and then below
the support level of $0.0500. Trading level of Dogecoin fell
indicating a fall in buying strength which is a sign of declining
bullishness. Technical Analysis DOGE noted a sharp decline in the
number of buyers on the four hour chart. Despite Dogecoin visiting
the overbought zone, buyers could not hold onto the momentum. A
slight decline in the buying strength can make selling pressure
stronger. The Relative Strength Index dipped on the chart and was
close to the half-line which meant that there was a fall in buying
pressure. Price of Dogecoin was peeking slightly below the 20-SMA
line which signified that sellers could soon start to drive the
price momentum on the chart. The meme-coin however was above the
50-SMA and 200-SMA which indicated that bullish momentum didn’t
completely fade out. Related reading | Dogecoin Emerges A Top
Gainer Despite Musk Vs. Twitter Legal Tussle The meme-coin
displayed signs of change in price action on the four hour chart.
The Moving Average Convergence Divergence depicts the price
momentum and reversals in the same. MACD displayed a bearish
crossover and formed red histograms on the chart. This reading is
tied to sell signal along with a flip in the current price
direction. Similarly, Directional Movement Index also demonstrates
price movement and direction. DMI was negative with the -DI line
above the +DI line. The Average Directional Index (Red) dipped
below the 40-mark signalling that the current price trend was
losing vigour at press time. Related Reading | Tesla Ruins Bitcoin
Rally? Musk’s Company Sold 75% Of Its BTC Featured image from
UnSplash, chart from TradingView.com
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