TL;DR Breakdown
- Dogecoin price analysis is bearish today.
- DOGE/USD is currently at $0.2682.
- Dogecoin currently tests support at $0.26.
Dogecoin price analysis is pessimistic today, as a second decline was registered overnight, resulting in the next support at $0.26. We expect a reversal to follow if the support holds DOGE/USD from further depreciation, but we anticipate more downside until then.
A downside break through $0.28 earlier today has led to further losses, with the price now at around $0.26 as we approach the weekend. However, we think this is not a low for DOGE/USD and that we will see at least some gains now that DOGE/USD has broken through support at $0.28.
DOGE/USD price movement in the last 24 hours: Low trading volumes
The trading volume is relatively low at this time, which suggests that DOGE/USD probably won’t be shifting too much in either direction until our next analysis. It also makes it likely that we will not see any great volatility over the weekend unless there is a news event surrounding Dogecoin or another market mover intervenes.
Today’s close: We were right about our hypothesis for DOGE/USD because the $0.28 support level broke and pushed the price down to the $0.26 support level. This means that our previous forecast still stands but with a little bit more bearish than bullish since this support level was tested twice, suggesting that one more push down won’t be enough to break this support level.
DOGE/USD 4-hour chart: DOGE to find support at $0.26?
On the 4-hour chart, we can observe some early response at $0.26, as Dogecoin appears to have completed its several-day retracement and is poised to break higher low.
This week, Dogecoin price movements were very volatile. On Wednesday, after a significant drop, a new swing low was established at $0.22. A massive rally ensued, breaking past the previous swing high and establishing a new high of $0.34 afterward.
We assume that the price will try and test the next level of support near $0.23-$0.24, as we have seen many times before in recent weeks and months. However, if DOGE/USD fails to break through this resistance, we can assume that a retest of $0.28 will be on the cards again in the short term, with an overshoot back to $0.30 possible if momentum is strong enough.
If buyers can maintain a price above around $0.29-$0.30, then it would be likely that they would manage to bring DOGE/USD back up towards our target of $0.32, whereas down below support at around $0.25 may see further losses, hence why we think there is room for the price to move back up before it heads lower again.
However, another push lower followed yesterday, leading to the $0.26 mark tested overnight. Today, the Doge price looks to move more down again as bears have taken the market back to the $0.26 mark.
We should expect DOGE/USD to break lower as the bearish momentum remains strong. If the $0.26 mark prevents further rise, we may see bullish momentum again early next week.
Dogecoin Price Analysis: Conclusion
Today’s Dogecoin price analysis is gloomy, as we will most likely see further declines below the $0.26 mark. However, if DOGE/USD continues to fall, we may witness a higher low later today.
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