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Dogecoin Retraced On Its Chart, Is There Chance Of An Uptrend?

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Dogecoin retreated slightly on its chart after showing bullish momentum. Today, most market participants were in the red. Currently, DOGE has found support in the $0.06 area, while some time ago the meme-coin was trading slightly above the $0.07 price point.

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The technical analysis of the coin still points to the possibility that the bulls will recover the levels above the $0.07 mark. Bitcoin has also recovered in the last 24 hours and was valued at $22,000. Most altcoins follow the same price trajectory.

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The buying power on the chart disappeared, but there were still more buyers than sellers in the market at press time. If Dogecoin continues its current price trajectory, the buying power will soon be replaced by the selling power.

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DOGE rallied in relief and there is always a chance of a pullback before the coin goes up again. It remains to be seen if Dogecoin returns to higher levels, however purchasing power remains crucial at this juncture for the meme coin.

Dogecoin Price Analysis: 4-Hour Chart

Dogecoin
Dogecoin was worth $0.686 on the 4-hour chart | Source: DOGEUSD on TradingView

DOGE was trading at $0.0686 after a slight pullback seen at the time of writing. The coin managed to gain a foothold on the $0.0600 support line. Upper resistance for the coin was at $0.0726, above which it could face some resistance at $0.0781.

If the coin gains momentum, it may even trade above the $0.0840 mark. Further south could push Dogecoin to $0.0575 before dropping below the $0.0500 support. The trading level of Dogecoin has fallen, indicating a decrease in purchasing power, which is a sign of decreasing optimism.

Technical analysis

Dogecoin
Dogecoin showed a drop in purchasing power on a four-hour chart | Source: DOGEUSD on TradingView

DOGE noted a sharp decline in the number of buyers on the four-hour chart. Even though Dogecoin visited the overbought zone, buyers were unable to sustain the momentum. A slight decline in purchasing power could increase selling pressure.

The relative strength index on the chart fell and approached the middle line, which meant a drop in buying pressure.

The price of Dogecoin was peeking slightly below the 20-SMA line, which meant that the sellers could soon begin to control the price momentum on the chart. However, the memecoin was above the 50-SMA and 200-SMA, indicating that the bullish momentum has not completely disappeared.

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Dogecoin
Dogecoin sell signal on 4-hour chart | Source: DOGEUSD on TradingView

The meme coin has shown signs of reversal in price action on the 4-hour chart. The convergence-divergence of moving averages displays price momentum and reversals at the same time. MACD showed a bearish crossover and formed red histograms on the chart.

This indication is associated with a sell signal along with a change in the direction of the current price. Similarly, the Directional Movement Index also shows price movement and direction.

DMI was negative with the -DI line above the +DI line. The Middle Direction Index (red) slipped below 40, signaling that the current price trend is losing momentum at press time.

| Tesla crashes bitcoin rally? Musk’s company sold 75% of its BTC

Featured image from UnSplash, chart from TradingView.com



Credit : www.newsbtc.com

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