Dogecoin price analysis: DOGE facing strong resistance at $0.20 after sharp drop

TL;DR Breakdown

• Dogecoin price is facing strong resistance above the $0.190 mark.
• Strong drop in price occured with market drop earlier today.
• Strong support is found at the $0.195 level.

Dogecoin price shows that the cryptocurrency is going into a bearish momentum despite repeated tries to recover back above the $0.20 mark. The cryptocurrency tried at least three times in the past 24-hours to break past the resistance level found at the $0.198 mark but to no avail. DOGE/USD price is going strongly bearish with small bursts of bullish retraces trying to hit and maintain a new high above the $0.195 mark.

Dogecoin price analysis: 4-hours chart shows strong support for DOGE

Dogecoin price shows promising support on the 4-hours chart however, the Bollinger’s band is showing increased volatility for the cryptocurrency. The Bollinger’s band shows that the cryptocurrency is averaged out at the strong resistance mark found at the $0.205 mark.

While the moving average shows a strong resistance at the $0.200 mark. The higher end of the Bollinger’s band stands at the $0.215 mark, while the lower end stands at the $0.194 mark.

The relative strength index (RSI) is one of the most important indicators and Dogecoin is showing an RSI score of 37.4 which is just near the underbought mark for the cryptocurrency.

Dogecoin 1-day chart shows bearish momentum

Dogecoin 1-day candlestick chart shows a bearish momentum for the past three days and today’s trend is not much different either. On the 1-day chart, Bolliger’s band is showing strong resistance at the $0.197 mark. While the upper Bollinger’s value stands at the $0.218 mark. The lower Bollinger’s value stands at the $0.17 mark. However, the volatility for the cryptocurrency is seen to be decreasing on the 1-day candlestick chart which is a promising sign for bullish momentum.

On the one day chart, the RSI score is standing at 43.21 taking it away from the overbought mark and towards the neutral figures. On the other hand, the moving average for the Dogecoin price is showing a strong resistance value at the $0.20 mark.

Out of the 26 total indicators, about 13 stands at the selling point, while nine indicators stand neutral with only four indicators on the buying point. Out of the 15 moving average indicators as many as 11 indicators stand at the selling position, one indicator stands neutral and three indicators stand on the buying point.

While out of the 11 oscillators as many as eight indicators stand neutral, two indicators stand at the selling position and only one indicator is standing at the buying position. This is perhaps the reason why the RSI score is also near the overbought area because traders must be trying to sell and others are trying to buy.

Conclusion

To conclude the Dogecoin price analysis we must look at the 4-hours and 1-day charts that are showing promising retrace towards the $0.197 resistance while the 1-day chart although showing bearish candlesticks shows a better RSI score in favour of the cryptocurrency.

If the cryptocurrency maintains the current support level found at the $0.195 mark it is very likely to manage and retrace above the $0.198 resistance. If the cryptocurrency fails to maintain the current support it can fall down to a new low.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/dogecoin-price-analysis-2021-08-03-2/