Dogecoin [Doge] Fails to Rise Above Key Resistance
Dogecoin rose above a key level around $0.00228 yesterday. This level has played an important role for Dogecoin acting as support from June to August of this year and preceded a price spike in early September.
During the extremely bearish movements of last week, Dogecoin dropped below this level. With an unexpected bout of bullish price action taking place this week, Doge managed to rise back above this level but failed to close above. Yesterday’s daily candle formed a Doji showing some uncertainty from traders regarding the direction price is moving towards. With the return to bearish market conditions taking place today, Doge has begun to decline again and currently trades around $0.00213.
The key support level to monitor from here is the important $0.002 level. Price dropped below this during the bearish movements of last week but returned back above it each time. The last time price traded below this point was November 2017.
For the moment, the price of Dogecoin trades in a range between $0.002 and $0.00228. Whatever direction price action breaks out in will likely depend a lot on overall market conditions. With Bitcoin after returning below $4000, market conditions at the moment are predominantly bearish. The one bullish factor to take into consideration is that today’s drop is on lower amounts of volume than the preceding increases. This shows that there may not be much strength behind this drop and there could be a return back to bullish movements.
- Dogecoin rose above a key level yesterday but dropped back below.
- Yesterday’s candle formed a Doji showing uncertainty from traders.
- Dogecoin trades in a range between $0.002 and $0.00228. Whatever way it breaks out is likely to depend on overall market conditions.
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