Dogecoin Price Movement Thwarted By Sellers, What’s Next On Chart?

Dogecoin price has witnessed a steep fall in the past week. It lost 15% of its market value in that given time duration. Over the last 24 hours, DOGE fell by 0.7%. The current price action pointed towards a range-bound movement.

If Dogecoin price continues to consolidate it might fall below its closest line of support. If the bulls attempt to rise the price of the altcoin higher than its current level then it might trade above its resistance mark.

Ever since broad market weakness stepped in, many altcoins have fallen on their respective charts. The technical outlook of Dogecoin price continues to indicate that there are chances of the bulls overtaking the bears provided buyers cooperate.

Bulls will continue to struggle with overhead resistance from the lack of buyers in the market. Dogecoin price had bought in 4% rise recently, however, the bulls could not sustain that. This also pointed toward demand for the coin at the lower price levels.

Dogecoin Price Analysis: Four-Hour Chart
Dogecoin was priced at $0.068 on the four-hour chart | Source: DOGEUSD on TradingView

DOGE was trading at $0.068 at the time of writing. It was recently defeated at the $0.071 price mark as sellers pulled the price down. This was because of the high demand for DOGE at lower levels. Overhead resistance for the coin stood at $0.070.

If Dogecoin price trades above that price mark, the next resistance would be at $0.072. The nearby support level for the meme-coin awaited at $0.056. A fall in trading volume of the meme-coin displayed a rise in selling pressure. For the coin to break past the resistance, buyers have to re-enter the market.

Technical Analysis
Dogecoin depicted a fall in buying pressure on the four-hour chart | Source: DOGEUSD on TradingView

DOGE has noted a fall in demand and therefore buyers too have left the market at press time. This could be a momentary observation as other indicators were starting to turn positive on the chart. The Relative Strength Index moved south below the half-line proving that sellers were in charge.

On the other hand, Dogecoin price was above the 20-SMA line, meaning that buyers were driving the price momentum in the market. If buyers act on the current price action then a move to the price ceiling will be over the next trading sessions.

Dogecoin displayed buy signal on the four-hour chart | Source: DOGEUSD on TradingView

The meme-coin portrayed that it could be a good opportunity for buyers to step in. The Moving Average Convergence Divergence picture the price momentum and changes in that. MACD formed green signal bars after a bullish crossover, this is tied to a buy signal.

Chaikin Money Flow depicts capital inflows and outflows of a coin at a given period of time. CMF was above the half-line which meant that capital inflows were positive. There was a small downtick on the indicator despite which capital inflows exceeded outflows.

Featured image from Pexels, charts from TradingView.com