Dogecoin Drops to a Support Area as the Momentum Shifts Downward

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Last Updated on March 1, 2023 by Bitfinsider

Dogecoin’s (DOGE) price increased from $0.079 on February 10 to $0.092 on February 16. From the swing low to the swing high, this rally gained 16%, but it ran into strong opposition at $0.089. These advances have almost entirely reversed in the most recent few days.

On Monday, Bitcoin (BTC) encountered some opposition just below the $24,000 level. It had a bearish structure on its lower period, and another decline of 5% was possible.

Since the middle of January, Dogecoin has fluctuated between $0.08 and $0.099 for a period of six weeks. The price was nearly at the range’s lows at the time this article was written. On the monthly chart, the RSI was also bearish. During the rally to the mid-range level, it made an effort to return above neutral 50, but was unsuccessful due to price rejection. If the daily session ended below the range lows, the bias would change to bearish.

All of February saw a drop in the OBV. This implied that there was significant selling pressure and that the sellers’ supremacy might cause prices to fall even further. However, the amount of trading has decreased along with the prices. This demonstrated the absence of a robust long-term downward tendency. Consequently, it was conceivable that DOGE would see a rebound.

Two factors were true, regardless of whether prices were on the rise or falling rapidly. Over the past month, the $0.078-$0.08 range has consistently provided support. With a clear invalidation on a daily close below $0.078 there was a solid risk-to-reward buying opportunity. Aggressive buyers should therefore think about purchasing Dogecoin at these prices.

In response to increasing sell demand over the past two weeks, the 90-day MVRV decreased. As a result, the indicator returned to the negative zone, indicating profit taking. The 90-day dormant circulation did not experience any notable increases; the prior upward movements occurred on February 17 and February 10, respectively.

On February 24, when Dogecoin fell to $0.08, the age spent metric also experienced a rise. Another spike on either indicator in the coming days could signal intense selling pressure and result in an abrupt downward movement on the price charts.

How to buy or trade DOGE on ProEX

You can buy or trade DOGE on ProEX. As ProEX frequently holds campaigns and events, you should check out its event page here to see if you can participate and win rewards as you trade.

On ProEX, you can trade DOGE as a spot pair (DOGE/USDT) in 3 simple steps:

  1. Sign up and register an account on ProEX 
  2. Buy USDT via ProEX One-click Buy 
  3. Trade DOGE/USDT at ProEX Spot
Image from ProEX

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