Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
One of the most popular meme coins in the world, the price of Dogecoin has not kept up with the memes in recent months. The longer-term biased market structure remained bearish. There was some evidence that bearish momentum was weakening, but that wouldn’t be enough evidence for longer term buyers. The token attempted to rise above a USD 0.135 resistance level but was rejected in recent days. This could herald further lows for the currency.
For DOGE, there were two levels of immediate interest. These are the lower highs of the downtrend at $0.173 and the lower lows of the downtrend at $0.1224. In the month of February, DOGE attempted to rise above the 23.6% Fibonacci retracement level. These levels are plotted based on the swing highs and lows at $0.34 and $0.12 from November to January.
The early February rally promised to break past $0.1719 and $0.196, but was rejected at $0.1736. This meant that the upward rally was just the latest of the many lower highs that Dogecoin has put on its downward trend since October.
Fibonacci levels also showed that the 27.2% extension of this move was $0.06, with $0.08 as the long-term support above it. If the price closes out a daily session below USD 0.12, it was likely to move towards these support levels in the coming weeks.
The RSI on the daily chart has remained below the neutral 50 to indicate a bearish trend. The Awesome Oscillator formed a higher low even as the price hit a lower low. This could be a sign of a weakening bearish momentum and a possible turnaround around the corner.
The AO cannot be taken alone – the price action still showed that the bearish scenario was more likely to unfold. The CVD also showed that selling pressures outweighed buying for most of the past few weeks.
Longer-term Dogecoin’s market structure remained bearish and the 27.2% extension level was at $0.06. There was also a long-term support level of $0.08. Above these levels, it was likely that the USD 0.1 level could have some psychological significance and act as a support.
This post Dogecoin showed conflicting signs but could see a decline if these lows are lost
was published first on https://ambcrypto.com/dogecoin-showed-conflicting-signs-but-could-see-a-drop-if-these-lows-are-lost/