DOGE Price Analysis: Should You Buy Dogecoin at $0.06 Dip?

DOGE Price Analysis: Amidst the growing bearish sentiment in the cryptocurrency market, Dogecoin has undergone a corrective phase after hitting a high of $0.0838. The V-top reversal registered a 24% loss in the last two weeks and is currently trading at a price of $0.0738. With no major sign of reversal, this popular memecoin could witness further downfall.

Also Read: New Whale Transfers $16 Million Worth Of DOGE From Robinhood

Dogecoin Daily Chart: Key Points

• The Dogecoin price could witness a high demand pressure at $0.056
• A bullish bearish crossover between the 50-and-100-day EMA could attract more sellers in the market
• The 24-hour trading volume in the Dogecoin coin is $263.5 Million, indicating a 65% loss

Source-Tradingview 

A V-top reversal is often marked by aggressive selling pressure in the financial market. The Dogecoin downfall backed by increasing volume indicates additional confirmation of sellers’ conviction to chase lower prices.

As of now, the DOGE price is wobbling above local support of $0.056, witnessing demand pressure from the discounted prices. After a sharp drop, the coin price is likely to show short consolidation to recuperate the selling momentum.

If the market trend remains bearish Dogecoin sellers could attempt to break the last swing low of $0.0533. This breakdown will signal a continuation of the prevailing downfall, potentially pushing the price back to $0.049, followed by $0.041. 

Can Dogecoin Rise Back to $0.0838?

On August 17th, Dogecoin printed a long-bearish candle in response to the Bitcoin dip. If the coin manages to sustain above $0.0533, the buyers must breach the high of the aforementioned candle which is $0.838. This breakout will bolster buyers for a 32% upswing to challenge the $0.0838 mark.

• Exponential moving average: The coin price trading below the daily EMAs (20, 50, 100, and 200) reflects the long-term trend as bearish. 
• Moving Average Convergence Divergence: A negative crossover state between the MACD(blue) and signal(orange) indicates sustained selling for the correction phase.