Dogecoin [Doge] Trades Near Pre-spike Support

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While the market has been bearish over the past week, Dogecoin has continued its decline to an important support level. Back in September, Dogecoin spiked from this support at $0.0022 to almost $0.007, an over 200% increase. Dogecoin is currently the 24th largest cryptocurrency by market cap.

A bearish divergence between price and RSI took place after this price increase and preceded the prolonged decline that Doge has been undergoing since. The only significant support area seen since the decline began has been the daily 200 EMA which provided brief support once but was easily broken through on the retest.

Dogecoin, which currently trades at $0.0024, dropped briefly below the $0.0022 support during the bearish market movements. A low of around $0.00205 was formed on Tuesday but price managed to recover above support before the close.

Doge Daily Chart – Source: Tradingview.com

Whether this support level can hold is questionable. The market has been undergoing extremely bearish movements, and the majority of altcoins have been following the direction of the market. The bearish market conditions currently taking place make it far more likely that the next significant move will be to the downside. Bitcoin which represents over 53% of the cryptocurrency market cap has been recording a slight recovery but is meeting strong resistance at the $4600 level.

Bitcoin Daily Chart – Source: Tradingview.com

Key Takeaways:

  • Dogecoin trading at significant support level where it traded prior to a spike in early September.
  • Doge has been undergoing a prolonged decline since the spike ended in September. The 200 EMA failed to hold as support.
  • Bearish market conditions make a significant move downward likely and may result in Doge dropping below the key support level it currently trades at.
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Dogecoin [Doge] Trades Near Pre-spike Support was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.