Dogecoin price analysis: DOGE struggles at $0.23 as trading volume dips 40 percent

Dogecoin price analysis

TL;DR Breakdown

  • Dogecoin consolidates above $0.23 in anticipation of a bullish rally
  • However, controversy surrounding Coinseed Inc. has put DOGE price in jeopardy as sellers look to take control
  • Further retracement expected before the next push towards $0.30 kicks in

Dogecoin price analysis suggests that the meme cryptocurrency has to hold plans for the next uptrend in price. As price recovers and consolidates above $0.23 support level, trading volume has dipped near 40 percent on the intra-day trade. This can be linked to controversy surrounding Dogecoin and Coinseed Inc., a cryptocurrency exchange that was shut down by New York Attorney General Letita James. The reason behind came as Coinseed converted customers’ funds into Dogecoin and allegedly violated the Martin Act.

Over the past 24 hours, Dogecoin price has been oscillating between a narrow range of $0.236 and $0.243, suggesting price is facing consolidation after last week’s decline. Trading volume shows a worrying sign for DOGE bulls, as it dropped near 40 percent, suggesting there is very little momentum in the market.

Dogecoin price went up almost 1 percent over the past 24 hours, following a positive day trade for the larger cryptocurrency market. The largest cryptocurrency Bitcoin was up around 2 percent, moving past $47,500, with Ethereum also increasing 2 percent to sit above 3,400. Altcoins show incremental gains as well, with Ripple moving up 1.5 percent at just above $1 and Cardano sitting at $2.4 after an increase of around 5 percent.

Dogecoin price analysis: DOGE struggles at $0.23 as trading volume dips 40 percent 1
Dogecoin price analysis: Cryptocurrency heat map. Source: Coin360

DOGE/USD 24-hour chart: Price consolidates above support but market volume shows worrying signs

The 24-hour chart for DOGE suggests that price is now consolidating after last week’s dip, but is trading in a narrow channel which puts resistance at $0.31. Furthermore, the declining trading volume presents a worrying scenario as buyers seem uninterested in taking advantage of the retracement.

The $0.23 support level presents a crucial threshold for the token, and the only change to put together the next push is if price can hold above this mark. The relative strength index (RSI) sits at a lowly 42, justifying the lack of market activity for Dogecoin.

Dogecoin price analysis: DOGE struggles at $0.23 as trading volume dips 40 percent 2
Dogecoin price analysis: 24-hour chart. Source: Trading View

DOGE/USD 4-hour chart: Price up since yesterday as price clears moving average

Dogecoin price analysis over the 4-hour chart shows positive signs of consolidation above $0.23 support, with price clearing the 20 day moving average. The next trading sessions will be crucial to determine the immediate future for DOGE price, as after effects from Coinseed’s controversy settle.

The 4-hour RSI sits at 54, suggesting some positive momentum in trading. However, price seems to be nearer to the upper Bollinger bands’ curve, exhibiting an over bought trend in the token. If buyers are unable to consolidate a push upwards, it is crucial that Dogecoin holds above support over the next few trading sessions.

Dogecoin price analysis: DOGE struggles at $0.23 as trading volume dips 40 percent 3
Dogecoin price analysis: 4-hour chart. Source: Trading View

Dogecoin price analysis conclusion

Dogecoin price analysis shows that the meme cryptocurrency shows little signs of setting up an uptrend currently. There is very little momentum in the market and the lowly RSI of 42 shows undervalued status. Furthermore, the token has been marred by controversy with Coinseed”s closure, further deterring buyer momentum.

Assuming price can hold above the current $0.23 barrier, it will face next hurdles at $0.256 and $0.268. Crossing these points will open it up towards the $0.3 mark. However, in a bearish scenario, price may dip towards $0.213, invalidating the bullish thesis.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Razi Khan

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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