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Dogecoin memecoin recently had significant fluctuations. Within 24 hours, the DOGE is up 1.84%, and it now trades at $0.1086. However, it is almost 16% down in the past 7 days from about $0.12 to as low as $0.09.
The Relative Strength Index (RSI) for Dogecoin has plunged well into the oversold area indicating that this latest sell-off may have been a yawn. This scenario implies a potential upside in the short term given that traders can look for profit opportunities at reduced rates.
One such notable development affecting Dogecoin’s immediate worth is a recent transfer of 108 million DOGE, equivalent to roughly $11 million, to the Robinhood exchange. The bigger-than-usual movement recorded on 8th July 2024 within the crypto community may greatly affect market dynamics as far as these transfers are concerned.
Crucial resistance levels have been set up for Dogecoin which could determine its future price actions. It would face stiff resistance if it crosses above $0.11 since there might be heavy sale pressure at $0.20 too. Breaking through this level would be an important indicator of change in market sentiment. Above this point, Dogecoin has room to achieve another resistance level at $0.50 and this would significantly change its position just within recent lows.
On the flip side, once Dogecoin’s price drops below $0.10 it might find itself being pulled back towards a lower supporting line located at $0.09 while further bearish market trends could take DOGE around the $0.08 mark meaning it will be an important support area to watch out for Maintaining these support levels is crucial for DogeCoin to prevent any further declines and stabilize its market position.
A bearish signal is seen in the declining trading volume during DOGE’s price recovery phase. Lower participation indicates that there is no strong belief in a sustainable rise in this price. Thus, it increases the risk of a bull trap- a scenario where prices go up for a short time but do not have enough stamina to sustain an uptrend resulting in a steep fall.
Given the present technical configuration, Dogecoin will probably find it difficult to hold onto its recent gains. The 28% drop in trading volumes highlights caution among market participants suggesting another retest of the $0.09 level.
DOGE is trading below the middle band indicating continued pressure on the downside. The price struggles to break through the 23.6 % retracement level showing that resistance remains extremely high at the $0.1125 20-day SMA which acts as a major hurdle to potential recoveries.
