Dogecoin (DOGE) has been mired in a prolonged period of stagnation, indicating the ongoing battle between the bulls and bears for market control. This prolonged phase of inactivity has lasted for more than a month, signifying a short-term consolidation phase. Against the backdrop of a tumultuous cryptocurrency market, DOGE enthusiasts and investors are eagerly looking for clues to the coin’s next step.
A close examination of the daily chart in a price analysis unravels two distinctive patterns that have defined DOGE’s price trajectory. There is a range formation with defined limits of $0.068 and $0.056, anchoring the coin’s recent price movements. Additionally, an ominous descending resistance trendline looms, providing an additional hurdle to DOGE’s potential upside.
Bearish Dogecoin Barriers and Crucial Thresholds
In light of the recent recession in the broader crypto marketDOGE is currently facing formidable supply pressure around $0.063. The continuation of the descending trendline encourages sellers, increasing the likelihood of retesting the persistent support at $0.059. Should this crucial level be breached, confirmed by a daily candle close, it could potentially intensify bearish sentiment, paving the way for a 5.5% decline towards the $0.056 level.
However, amid this challenging terrain, the $0.059 support level is converging with an ascending trendline, creating a region of greater importance. Should buyers seize this moment of market indecision, a successful break above the descending trendline could revive bullish sentiment. A confirmed breakout could spark a rally, sending DOGE up by an estimated 10%.
DOGE market cap currently at $8.5 billion. Chart: TradingView.com
Market snapshot and analyst insights
Currently, the global cryptocurrency market cap stands at $1.06 trillion, showing a marginal decline of 0.41% over the past day. DOGE is currently trading at around $0.060725 according to Coin geckowith a 24-hour decline of 1.3% and a seven-day loss of 1.6%.
Total market capitalization for #Crypto combats the resistance of the 200-Week EMA here.
I think it’s only a matter of time before we get over it. Probably 1-2 weeks if Ethereum ETF Futures can be approved and Uptober starts. pic.twitter.com/UyKNjgUgf1
— Michaël van de Poppe (@CryptoMichNL) September 21, 2023
Meanwhile, crypto analyst says Michael Van de Poppe that the total crypto market cap is currently testing the resistance level of the 200-week EMA. He claims, “I believe it is only a matter of time before we break this breach, possibly within 1-2 weeks if Ethereum ETF Futures receive approval and Uptober begins.”
Dogecoin is currently at a critical juncture, navigating a consolidation phase in a market full of uncertainty. Traders and investors are closely watching developments and eagerly await clues that will determine DOGE’s path forward. Both bullish and bearish possibilities lie ahead, making the coming weeks critical for DOGE and the broader cryptosphere.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
Featured image from iStock
