The price of Dogecoin has fallen back significantly since mid-May 2021 and has remained locked up in a large pennant. Although the ground for selling seems to be complete, the value needs to break above the resistance at USD 0.15.
The meme coin Dogecoin (DOGE) is trying to regain the medium-/long-term trend. However, the widespread selling pressure in the cryptocurrency market quickly thwarted its recent bullish intentions.
DOGE is trading at around USD 0.145 and has accumulated a 5.4% loss in the last 24 hours. Its daily trading volume is above USD 2.7 billion, and its market capitalization is about USD 19.31 billion. It occupies 12th place in the cryptocurrency ranking, according to CoinGecko.
The following analysis will allow a better understanding of how the price of DOGE has behaved.
The Weekly Analysis of the Dogecoin Price
The cryptocurrency market is undergoing a widespread correction that prevents Dogecoin from regaining its bullish trend.
DOGE was preparing to exit a nearly twelve-month correction after seeking to break above the resistance at USD 0.15.
The DOGE/USDT weekly chart shows that the price of this meme coin has retraced significantly since mid-May 2021.
The value of Dogecoin has remained locked up in a large pennant. That figure usually indicates a break in the trend before its subsequent resumption.
Although it looked as though Dogecoin would resume the higher upward trend, its price returned to the sideways range, where it remains locked.
The price crosses the 8-week EMA and the 18-week SMA to the downside, with the latter two serving as dynamic resistances.
Sellers Put Pressure on the Trend of DOGE
The selling pressure in the cryptocurrency market is invalidating the bullish intention of DOGE. Furthermore, the exhaustion of sellers is evident as the recent lows have not been effective.
The ground for selling seems to be complete. Before confirming that the bulls have regained control, the price needs to break above the resistance at USD 0.15.
If the price breaks through the immediate support at USD 0.11, the corrective process may need to extend further, perhaps to USD 0.08. For now, that scenario is more unlikely to occur.
The Daily Chart Indicates the Scenario Is Still Optimistic
It is possible to observe the recent bullish power in this time frame. However, a rapid selling pressure also invalidated the previous price rally.
Despite the recent negative performance, the short-term trend remains bullish.
The price is still crossing the 8-day EMA and the 18-day SMA to the upside, and the latter two may serve as dynamic supports.
For Dogecoin to be in a sideways range for longer, the daily chart must first show increasingly low lows. That scenario is unlikely to occur at the moment.
As DOGE attempts to regain its bullish trend, Shiba Inu (SHIB) is trading at around USD 0.000024 and has accumulated a 0.2% gain in the last 24 hours. Its daily trading volume is above USD 917.45 million, and its market capitalization is about USD 13.67 billion. It occupies 15th place in the cryptocurrency ranking, according to CoinGecko.
By Alexander Salazar
