Dogecoin Price Analysis: DOGE showing signs of fatigue after 40% rally

TL;DR Breakdown

• Dogecoin price analysis highlights DOGE’s 40 percent surge.
• Dogecoin surges after Coinbase listing.
• Critical indicators show a price reversal is looming.

Since June 1, Dogecoin has been recording impressive price movements, allowing bulls to recover some of the ground lost during the May 19 market crash. During the market-wide crash, Dogecoin plunged to $0.21 before making a sudden price recovery, moving past the $0.4 mark. Despite its impressive comeback, Dogecoin recorded a price retreat that saw it consolidate between the $0.27 and $0.36 price range.

Dogecoin Price Analysis: General price overview

Before being listed on one of the top crypto exchange platforms in the world, Coinbase Pro, Dogecoin price movement was on a slow decline. The news of its listing saw the crypto coin surge exponentially but not enough to break above its crucial resistance barrier.

Between May 26 and 29, Dogecoin registered a 23 percent decline before finding support at $0.293. The surge from this support level saw the crypto coin appreciate $0.328, a price movement that saw the Momentum Reversal Indicator flash a reversal signal. Despite this development, Dogecoin commenced with its 40 percent bull run due to the Coinbase news, which propelled it towards $0.450.

Although this price movement was massive, Dogecoin failed to bypass its $0.45 resistance level and its critical supply zone that ranges from $0.480 to $0.515. Dogecoin’s premature fatigue appears to be pushing the crypto’s price towards its immediate support level at around $0.399. This is supported by the Momentum Reversal Indicator action to indicate a preemptive cycle top signal in the form of a yellow down arrow. Such ambivalence means Dogecoin’s upward price movement might not be over and that investors should be on the lookout for a possible upsurge in the near term. In such a case, the meme-themed crypto-asset could register another 16 percent upsurge to retest the $0.481 lower trend line of the supply zone.

If all these developments evolve, the Momentum Reversal Indicator will indicate a red candlestick to signal a full-blown reversal signal is in the offing. This will lead to a one-to-four candlestick price correction.

Dogecoin price movement in the past 24-hours

The recent Coinbase Pro listing breathes a breath of fresh air to the fast-rising crypto asset. Following the news, investors have rushed back to buying the crypto coin in the past 24-hours, suggesting the milestone is legitimate. Additionally, many investors now believe other platforms will adopt the crypto token to make it an acceptable mode of payment, hence the ongoing rush to accumulate DOGE tokens.

As Coinbase prepares to commence trading of Dogecoin on its platform, liquidity is poised to build up. At present, there are numerous crypto and fiat pairs available for trading the dog-themed cryptocurrency.

Dogecoin 4-hour chart

According to Dogecoin’s 4-hour chart, the 50 and 100 Simple Moving Averages have been breached, paving the way for a price rally past the coveted $0.4 mark. At the time of writing, Dogecoin exchanges hands around $0.383, with the Moving Average Divergence Convergence hovering above the signal line but moving downwards.

This means Dogecoin is bound for a brief price decline before resuming its bullish match towards the $0.4 mark. As for the Relative Strength Index, Dogecoin stands above the midline but quickly moving towards the negative zone. Despite the bearish pattern forming, Dogecoin is poised for a price surge past the $0.45 immediate resistance barrier to soar towards the $6 mark.

Conclusion

If bulls fail to ensure Dogecoin settles above the $0.37 support level, the crypto coin could either register sideways price actions or produce negative price trends. This could see the crypto lose 8 percent of its growth to settle around the $0.37 price region.

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-2021-06-03/