October 31, 2023
Dogecoin (DOGE) price is currently hovering below support/resistance at $0.07 as the crypto market calms down after a period of bullish action. This consolidation comes after the hype surrounding the potential greenlighting of Bitcoin spot exchange-traded funds (ETFs) in the US.
During the past month, Dogecoin has seen gains of 7.3%, with a 13% increase in the past two weeks and a 2.3% increase in the past seven days, according to market data from CoinGecko.
However, on Tuesday during US business hours, Dogecoin experienced declines, with a 2% correction in one hour and a 3.6% correction in 24 hours, bringing the price down to $0.0671. This bearish wave is not unique to Dogecoin, as other major cryptocurrencies like Bitcoin, Ethereum, and BNB also saw declines.
Dogecoin price recently tested resistance at $0.072 and almost confirmed a double-bottom pattern breakout to $0.1. However, the prevailing overhead pressure prevented this breakout. The loss of support at the 200-day Exponential Moving Average (EMA) could further weaken the technical structure and result in a larger breakdown. The Relative Strength Index (RSI) sinking deeper into the neutral area suggests a downward flip in the path of least resistance. This indicates the possibility of Dogecoin sweeping through lower support areas to collect liquidity and build momentum for the next breakout.
The 100-day EMA at $0.0649 could help absorb selling pressure and reduce the chances of a stronger sell-off. Other key support levels to watch out for include the 50-day EMA at $0.0637 and the double-bottom support at $0.058.
Renowned trader and analyst Rekt Capital suggests that Dogecoin has been rejected from the channel top after a weekly close below it. He notes that every time Dogecoin has performed such a weekly close, it has dropped into the channel bottom. Rekt Capital advises investors to acclimatize to potential losses extending to $0.058 before the trend reverses.
The Dogecoin community is preparing for a major network upgrade scheduled to take place on November 1 at 3 AM UTC. This upgrade aims to improve scalability and stability. Users have been informed that they may experience some downtime when carrying out transactions on Dogechain. They are also advised to switch their wallet RPC to https://rpc.dogechain.dog as other RPCs will stop providing service after the upgrade.
Dogecoin's price is currently consolidating below support/resistance at $0.07. Technical analysis suggests the possibility of a larger breakdown if the support at the 200-day EMA is lost. Key support levels to watch out for include the 100-day EMA, the 50-day EMA, and the double-bottom support. Insights from Rekt Capital indicate the potential for further losses before a trend reversal. Additionally, the Dogecoin community is preparing for a major network upgrade to improve scalability and stability. While the impact on price is uncertain, this upgrade demonstrates the commitment of developers to the future of the project.