Dogecoin Slips Under $0.06200: Is It a Good Short?
- The DOGE/USD pair has demonstrated a bearish trend, particularly after descending below the $0.0623 mark, hinting at a potential for deeper declines.
- Technical indicators highlight concerns: the 50-day EMA is near 0.0638, and oscillators like the RSI and MACD suggest strengthening bearish momentum.
- The critical level to watch is 0.0620; a closure below may push Dogecoin towards the 0.0560 support, while a rise above 0.0630 could aim for 0.0680 or 0.075.
Dogecoin, once a meme-inspired cryptocurrency that garnered widespread attention and adoption, has recently experienced a downturn, slipping below the$0.06200 mark. This shift, which has caught the attention of both seasoned traders and casual observers, prompts a pertinent question: Is now the opportune moment to consider a short position on Dogecoin?
In the following analysis, we’ll delve into the factors contributing to its current trajectory and evaluate the potential risks and rewards of betting against this popular digital coin.
Dogecoin Price Prediction: Technical Outlook
The current Dogecoin price stands at $0.061236, having seen $276,118,384 in trading volume over the past 24 hours. In this time frame, it has declined by 0.28%. CoinMarketCap places Dogecoin at the #7 rank, attributing it a market capitalization of $8,632,671,753 USD. Presently, there are 140,973,126,384 DOGE coins in circulation, and there’s no information on its maximum supply.
On the technical front, the DOGE/USD pair is displaying a bearish bias. After breaking below the $0.0623 level, a further decline could potentially push the DOGE price even lower.
Technically, Dogecoin is exhibiting barriers, especially after the formation of a bearish candle on the daily timeframe. As observed on this timeframe, the 50-day exponential moving average hovers around the 0.0638 level. Closing of candles beneath this level strengthens the possibility of a bearish continuation. Furthermore, oscillator indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) provide additional insights. The RSI remains in a selling zone, positioned under the 50 level and currently standing at around 36.
Concurrently, the MACD indicator stays in a negative zone, though the diminishing size of its histograms suggests the bearish momentum might be waning, and sellers might soon gain the upper hand.
Considering these technical cues, it’s crucial to monitor the 0.0620 level. If candles close beneath this threshold, it could drive Dogecoin prices towards a robust support level at 0.0560, with 0.0495 serving as a pivotal support thereafter. Conversely, should there be a bullish surge above the 0.0630 level, Dogecoin might target the 0.0680 or even the 0.075 level. In summary, the key is to observe the 0.0620 level for potential short positions below it and long positions above this mark.
Stay tuned for more updates!