Dogecoin price analysis: DOGE plummets as China central bank deems crypto transactions illegal

Dogecoin price analysis

TL;DR Breakdown

  • China reportedly places a ban on crypto services and transactions in the country, plummeting the cryptocurrency market
  • Dogecoin loses over 8 percent in price on intra-day trade following the news
  • Trading volume declines over 45 percent, indicating panic sell offs

Dogecoin price analysis for the day shows a distinct decline for the token, following a reported ban on cryptocurrency services and transactions by China’s central bank. After dropping as low as $0.2006 in the running bearish trend earlier in the week, the meme cryptocurrency forced a come back on September 23 to record highs of $0.229.

However, the upheaval proved to be short-lived as price went back to $0.207, which is the persistent pivot at the time of writing. Support is now set at $0.192 and $0.1750, with more panic sell-offs expected on the day trade.

The larger cryptocurrency market also suffered from the news coming out of China, as Bitcoin dropped around 5 percent at just above $42,000. Ethereum crashed a further 7 percent over 24 hours to sit at $2,880, whereas Altcoins also showed significant dips. Solana dropped 7 percent, Polkadot 8 percent and Ripple 5 percent. However, Cardano surprisingly rose more than 5 percent to solidify above $2.3.

Dogecoin price analysis: DOGE plummets as China central bank deems crypto transactions illegal 1
Dogecoin price analysis: Cryptocurrency heat map. Source: Coin360

DOGE/USD 24-hour chart: Price declines despite formation of late bullish hammer pattern

On the 24-hour chart for Dogecoin price analysis, a bullish hammer pattern has appeared. However, price has continued to decline as the support at $0.192 gets tested. The trading volume for the token has fell over 45 percent which is justified by the lowly Relative Strength Index (RSI) value of 36. Price has also fell past the 50 100 and 200-day Exponential Moving Averages (EMA) and needs to hold the 20-day line to maintain above $0.192 support. At current price, resistance is set at $0.244.

Dogecoin price analysis: DOGE plummets as China central bank deems crypto transactions illegal 2
Dogecoin price analysis: 24-hour chart. Source: Trading View

DOGE/USD 4-hour chart: Buyer momentum coming in as support gets tested

The 4-hour chart shows a positive return in the current trading session for the meme cryptocurrency. The slight upturn can be associated to buyers’ push to establish price above support and consolidate there. The RSI value shows an undervalued status for DOGE at a value of 42 as price stays between the mid and bottom Bollinger Bands curves. The Moving Average Convergence Divergence (MACD) also presents a bearish outlook after falling below the neutral zone. Overall, technical indicators look bearish for DOGE despite the late positive movement and the token looks set to continue sitting at or just above the support level.

Dogecoin price analysis: DOGE plummets as China central bank deems crypto transactions illegal 3
Dogecoin price analysis: 4-hour chart. Source: Trading View

Dogecoin price analysis conclusion

Technical indicators look bearish for Dogecoin, in line with the recent decline after China’s reported ban on cryptocurrency transactions and services. The RSI shows a highly undervalued status for the coin. Trading volume also fell significantly over 24-hours, suggesting of the panic selling that dominated the market.

Price currently sits just above support at $0.192, with the next support level set at $0.1750. To initiate a change in fortunes, DOGE must hold above the 20-day EMA and consolidate there. According to technical indicators, the token presents a precarious buying opportunity for traders.

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.

Richard Adrian

Richard Adrian

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience - Cryptopolitan.

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