Dogecoin [DOGE] Declines Below Key Support
Dogecoin has been on a prolonged decline since early September. After multiple tests of key support at $0.0022, Doge now trades below, and it is questionable whether it can remain above $0.002.
After a period of prolonged trading at support around $0.0022 in August, the price spiked to near $0.07 in the space of around a week. The decline has been taking place since this point, and very little support has come into play. The 200 EMA provided some support but broke down on a retest.
Price currently trades around $0.0021, and it looks likely that it will continue to decrease. Momentum is strongly with the sellers with both the MACD and the RSI decreasing. The MACD has started to flatten out more recently as the decline slowed at support.
The bearish market conditions being seen likely played a big factor in Dogecoin dropping below the support level. Over the weekend, the market leader Bitcoin broke below $4000 to form a new 2018 low around $3500.
Traders in Dogecoin should also monitor the market leader Bitcoin which represents around 54% of the total cryptocurrency market cap. It would be very difficult for altcoins such as Doge to continually record strong appreciations as the market leader continues to decline. Bitcoin currently seems to be meeting some resistance at the $4000 mark and may be setting up to return and test yearly lows at $3500 on its next drop.
- After a prolonged decline and multiple tests, Dogecoin breaks below support at $0.0022.
- Momentum is still on the side of sellers, so a further drop below $0.002 is definitely a possibility. Both the MACD and RSI have been decreasing, but the MACD somewhat started to flatten out after the $0.0022 support came into play.
- Traders in Doge should also monitor the market leader Bitcoin which represents around 54% of the cryptocurrency market cap. Bitcoin seems to be currently meeting some resistance at the $$000 mark and may be setting up for a return to 2018 lows at $3500.
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