Dogecoin is under substantial stress amid sell-off in Crypto markets. It’s a hard day for crypto markets as all significant cryptocurrencies are under stress. Bitcoin has recently attempted to settle below the psychologically important $60,000 level and tested the 50 EMA at $59,100 while Ethereum worked to get below $4,100.
Meanwhile, Dogecoin got powerful downside force after it led to settle below the 50 EMA at $0.2555 and tested the support at $0.2250 before moving back above the $0.23 level.
Another meme cryptocurrency, Shiba Inu, has also exposed itself under strong influence and attempted to settle below $0.000045.
The current sell-off is broad, and there is nothing unusual in Dogecoin’s performance. According to CoinMarketCap, Dogecoin continues in the top-10 cryptocurrencies by market capitalization, followed by Shiba Inu, which holds the eleventh place.
Is It Time To Buy The Dip In Dogecoin?
If we look into the large image for Dogecoin. Dogecoin encountered notable resistance near $0.34 and pulled back below the 20 EMA, which is located near the $0.25 level.
A move under the 20 EMA on the weekly chart compared with the move below the 50 EMA on the daily chart directed considerable pressure on Dogecoin. The general tendency of crypto markets served as an additional downside catalyst for Dogecoin.
The nearest significant support level on the weekly chart is at the 50 EMA which is located near the $0.20 level. Dogecoin received support near the 50 EMA after strong pullbacks in July and later in September. The price did not test the 50 EMA level in both circumstances as traders started to increase purchases of Dogecoin when it was driving towards the 50 EMA.
At this point, Dogecoin’s value remains well above the 50 EMA, so there is no material “defense” level nearby. In this understanding, the current pullback may work as an opportunity for short-term traders, but it does not seem powerful enough for strategic purchases.
To have a chance to earn upside momentum, Dogecoin will have to go back above the 20 EMA on the weekly chart, which will provide it with an opportunity to move closer to the next important resistance on the weekly chart, which is placed near the $0.30 level.
Is It Time To Sell the Dogecoin?
Dogecoin’s price has not conferred any power as its peer meme coins surged to new highs. The uncertainty in the market seems to be hitting DOGE as it has been freefalling for almost three weeks. However, this bearish forecast could end if history repeats.
At the time of writing, one Dogecoin is $0.239, which is almost 0.77 percent less than one day ago. However, it doesn’t seem very easy for the coin to notice any improvement in the price. Some experts think because of overselling of the virtual currency.
The price can further decrease to almost 0.18 USD. In the past few days and weeks, the 5th largest cryptocurrency has seen several sales of its coins by traders and investors.
In recent days, many of the sellers sold their coins, and thus the value of the currency observed a bearish trend.
Furthermore, the threshold to keep Dogecoin from failing becomes challenging to overcome. Therefore, as mentioned above, the price of the digital coin has fallen around 0.77 percent.
On the other hand, some experts and investors challenge that altcoin’s price could also go down to almost 75 percent and end up at 0.08 USD.
Dogecoin Price Analysis
As per the technical analysis alone, the Overall 24 hours recommendation is Neutral. At the same time, none of the 3 Momentum Metrics stayed positive. In the last 30 days, the digital currency has noted a bearish trend and signal. Also, the price has declined in the past month.
The 2021 volume profile shows a thinly traded range somewhere between $0.18 and $0.08. This suggests that little or no trading has happened among these price levels.
That is a negative sign because the price treats these low-volume levels as a vacuum. Moreover, this high-volume node does not appear as low as $0.08 – $0.09.
Dogecoin Price Prediction for 2021
In the next 24 hours, the meme-based crypto coin will have a price somewhere between $0.20 and $0.24. As we all understand, the moon mission, which is assumed to go with the funds of Dogecoin.
These funds will support carrying all the expenses that the satellite will have. Because of this purpose, there remains little interest in supporting Dogecoin.
Moreover, one tweet from Elon Musk could also turn the whole game for this coin and reach its ATH price. We can only give you the expected price of this digital coin.
As we discussed above, these predictions are based on technical analysis alone and with the guidance of some experts. Therefore, don’t take these forecasts as a piece of financial as well as a piece of investment advice.
Before investing in cryptocurrencies, specifically, Dogecoin, do your analysis and then spend your savings on it.