Dogecoin is the crypto that started as a meme, and has recently faced tough market shifts to the downside impacting its value.Currently Dogecoin is priced at $0.1428 and has witnessed a slight drop of 0.56% in the last 24 hours and a 11.51% drop in the last 7 days. With a market cap of approximately $20.66 billion, Dogecoin holds the 8th position in the crypto rankings. Amid these fluctuations, DOGE trading volume in the last 24 hours has also dropped by over 43% and now stands at $722 million
Since DOGE hit $0.22888 high on March 28th, it saw a 47% price correction and found support at the $0.12010 level on May 1st. This support level is crucial as it shows a substantial rebound point for the crypto asset
The technicals for DOGE show mixed behaviors of market forces and indicators. The coin is currently trading within an ascending horizontal channel thus indicating potential for uptrend if the channel is maintained and respected. Below this channel is a supportive ascending trendline that has been in play since March 10th 2023 therefore strengthening its reliability over an extended period
The moving averages show a mixed sentiment with the EMA 50 and EMA 100 positioned at $0.1526 and $0.16227 respectively and both above the current market price, therefore suggesting bearish conditions. On the other side the EMA 200 is below at $0.12652 therefore acting as support if the price drops further. The daily Relative Strength Index stands at 41 indicating that the market is close to oversold region which could lead to a price recovery as the market seeks balance.
The Moving Average Convergence Divergence also shows bearish momentum with the MACD line below the signal line. A bullish crossover in the indicator could represent a renewal of buyers interest at these levels.
Looking further at metrics data, they confirm the bearish sentiment seen in other indicators. The Total Value Locked (TVL) in Dogecoin from DeFiLlama has fallen from a high of $7.8 million in late March to the current $4.88 million.
DOGE Futures Open Interest from Coinglass has also decreased from over $2.2 billion in late March to $859 million today reflecting decreased trading interest.
Potential Road Ahead for Dogecoin?
Several crypto analysts have indicated that Dogecoin is at a make or break level especially with Bitcoin approaching its range lows. This level is crucial as it may dictate Dogecoin ability to leverage any positive shifts in the overall crypto market. An upward trend in Bitcoin could catalyze a similar bullish momentum for Dogecoin.
While it currently faces downward pressure, the technical indicators and market dynamics suggest there are opportunities for recovery.
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