Dogecoin price analysis: DOGE retests descending trendline around $0.22, prepares for a rapid spike lower?

TL;DR Breakdown

• DOGE moved to the $0.22 mark overnight.
• Lower high established again.
• Market ready to move lower again.

Dogecoin price analysis is bearish for the next 24 hours as another lower high has been set along the several-week descending trendline of resistance. Therefore, we expect DOGE/USD to start moving lower again later today and push below the $0.195 support once again.

The overall market trades in the red over the last 24 hours. Bitcoin has declined by 1.27 percent, while Ethereum 1.92 percent. 

Dogecoin price movement in the last 24 hours

DOGE/USD moved in a range of $0.2105 – $0.219, indicating a moderate amount of volatility. Trading volume has decreased by 5.54 percent and totals $842.3 billion. Meanwhile, the total market capitalization trades around 27.5 billion, ranking the cryptocurrency in 7th place overall.

DOGE/USD 4-hour chart – DOGE ready to move lower again?

Looking at the DOGE/USD 4-hour chart, we can see the Dogecoin price action starting to push towards the next major support around $0.165.

The overall market trades with a strong bearish momentum over the past weeks after the previous swing high around $0.29 was set at the end of June. After reaching the 100-period moving average, DOGE/USD retraced and set several lower highs.

Over the following days, a clear descending trendline of resistance was established at a relatively steep angle, indicating strong bearish pressure. Last week, DOGE/USD broke below the $0.23 local support and retested it as a resistance, further indicating bearish momentum.

Yesterday, the Dogecoin price slowly moved higher and retested the descending trendline overnight. What followed was a slight move lower as bears prepare for another major swing lower. This price action development should lead DOGE/USD towards the next major support, around $0.165 over the next few days, where the market will have a tough decision on where to go next.

Dogecoin Price Analysis: Conclusion 

Dogecoin price analysis indicates a bearish sentiment for the upcoming days as another lower high was set overnight. This price action development should lead DOGE/USD towards a lot more downside this week, with the next support target around $0.165.

While waiting for Dogecoin to move lower, read our guides on DeFi advantages, Bitcoin fees, as well as what can you buy with Bitcoin.

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-2021-07-12/