Dogecoin Price has faced a major challenge as its recent rally stalls. Dogecoin struggled to continue its rally as it faced strong resistance at the 4-hour Simple Moving Average, halting its recent push against a bearish trend.
Dogecoin’s (DOGE) recent price movement has hit a roadblock as it struggles to break through the 4-hour Simple Moving Average (SMA) resistance level. Despite initial signs of a potential rebound, the failure to surpass this crucial threshold suggests that bullish momentum is weak. In this overview, analyze why the Dogecoin rally has stalled and what it could mean for the future price of DOGE.
Dogecoin Price Struggles at 4-Hour SMA Resistance
The latest attempt by Dogecoin price to recover some of its lost ground has been severely tested. The DOGE price could not break above the critical 4-hour Simple Moving Average (SMA), which has emerged as a very significant resistance level. It has proved hard to crack and has continued to be under the pressure of bears, thus failing to give a meaningful breakout.
Initially, DOGE is showing it is trying to bounce back, yet failed to breach the 4-hour SMA resistance. In this case, the future of the meme coin becomes precarious since sellers seem to win in the market. For DOGE to regain the bullish trend, it has to break past the 4-hour SMA resistance. If it can’t do so, then its price might hit lower support zones.
Why does the RSI signal a bearish trend for DOGE?
The relative strength index, the market’s force of strength that is of strong importance in what to watch over is very necessary for DOGE, kept at less than the 50 percent level; such selling pressure tends to be above the buying pressure. Due to this fact of DOGE having failed to move above the barrier at the level of 50% about RSI, the bulls tend to point that price moves under control from bears and everything rallies to very minimal bounds.
As long as the RSI stays below 50%, the probability of DOGE breaking out remains low. This bearish trend may continue pushing DOGE down to lower support levels. It would only reverse if market sentiment shifted and the RSI went above 50%. This could turn the trend around.
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Important Support and Resistance Levels for Dogecoin
Key support and resistance levels will assist traders and investors judge the future movements of prices. Currently, DOGE is trying to break out the level of support at $0.3066. Therefore, in the event this downtrend persists, there will probably be a stop that will come along at this very level. Then again, should it drop lower than that level of support, DOGE is likely to roll down further and hit the support zone next; that’s going to be around $0.2677.
The alternative side is the break above the 4-hour SMA resistance for DOGE; then, its next resistance area to watch will be $0.3563. A good break above the latter could facilitate a further upward move to the level of the zone at the $0.40 resistance area. However, in the existing bearish trend, a positive breakout is quite uncertain.
What Does This Mean for Dogecoin’s Future?
The inability of the DOGE price to break past the SMA resistance at the 4-hour chart level raises doubt over its short-term upside prospects. The failure to break out of this resistance, combined with bearish RSI signals, indicates that the downward force may still be seen on Dogecoin. The next few days will determine whether the bullish momentum will return to DOGE or if a downward move is poised to remain the case.
For a bullish reversal to happen, the Dogecoin price has to break the 4-hour SMA resistance and find the RSI above 50%. Otherwise, DOGE is prone to further declines especially if it moves below the important support levels at $0.3066 and $0.2677.
Conclusion: The recent uptrend in Dogecoin price has fizzled as prices were struggling to move above the 4-hour SMA resistance. Ongoing bearish pressure, characterized by the RSI remaining below 50%, will most likely maintain this negative sentiment for DOGE. The two factors highlighted earlier will thus need to be rectified for DOGE to reverse the trend.
Traders should watch out for a breakout above the 4-hour SMA and $0.3563 resistances. However, if Dogecoin price fails to break through the resisting levels discussed above, then it might continue to stay under pressure and come back to rest near its supports at $0.3066 and $0.2677. The next few weeks will be critical to see whether the Dogecoin price can break through those resistances or if the bearish momentum continues.
By focusing on these levels, traders can make informed decisions about their Dogecoin price positions, knowing the market is still.
Also Read: How Litecoin’s $100 Support Could Trigger Its Next Major Price Surge
