The first thing that started to excite investors with volatility and rising prices, Dogecoin was a king of those things in 2021. With a 160x move in the first four months of 2021, expectations were skyrocketing for DOGE. Alternatively, any holder would be a fool to continue expecting an uptrend even after such a huge move. As profit bookings began to grip the price action, we saw major support levels being destroyed.
The negative action induced by profit booking continues through August 2022, and price action over the past two months has at least jumped from its lows of June 2022. Due to volatility and consolidation In price, Dogecoin jumped from the top ten to eleventh with a combined market capitalization of $9.05 billion. The outlook for this token may take a turn with positive news and trader acceptance as the move to Mars could take a few more decades.
Dogecoin Price Analysis
Dogecoin price is experiencing strong resistance that is decimating any buying sentiment at $0.0730. Despite repeated attempts by the buyers, the technical indications did not suggest any possibility of a breakout.
At first glance, the price action looks much better from the $0.0500 levels in mid-June 2022. The upward move created positive price action and a 50% gain, but DOGE seems to have peaked under the negative sentiment on cryptocurrencies. Over the past two months, RSI has simply copied the actual price action. The upside spikes below the consolidation zones indicate that the sellers are taking matters into their own hands just as prices reach the upper boundary of $0.0730.
On the other hand, DOGE made two downtrends even in July that exceed the lower boundary. Buyers appear to be taking advantage of the lower bounds and continuing to decline towards the immediate support level, while sellers do not allow a gain higher than $0.0730. This price consolidation will induce a perfect breakout in the next swings, but the current swing is heading for a retest at the immediate support levels. Discover our Dogecoin Prediction for detailed information on DOGEUSD’s future projections.
Dogecoin’s outlook is a red flag version of its daily candlestick patterns. DOGE failed to make a positive breakthrough with consistent profit bookings pushing the value below $0.0730 despite positive bids from the buyers.
Since the June 2022 retracements, sellers have continuously undervalued Doge. There hasn’t been a week indicating positive action on the candlesticks, as the past seven weeks have simply allowed DOGE to stay afloat at the consolidation level.
MACD embarked on a positive breakout, but RSI confirms consolidation with its tight price action which is just 10% above the overbought zones. The outlook is more tilted towards the negative end than consolidation on the long-duration charts, as DOGE is trading at a 91% discount to its peak value of $0.7605.