Dogecoin’s latest attempt to regain its lost strength has hit a major hurdle as the price struggles to break above the crucial 4-hour Simple Moving Average (SMA). This resistance level has proven to be a formidable barrier, with downward pressure constantly preventing any meaningful breakout.
Despite initial signs of a potential rebound, DOGE’s inability to cross this key threshold suggests that bullish momentum remains fragile, leaving the memecoin in a precarious position. The rejection at the 4-hour simple moving average highlights the growing dominance of sellers in the market, casting doubt on whether buyers can regain control to push the price higher.
A decisive move above the four-hour simple moving average could signal a return of positive sentiment, which could pave the way for DOGE to target higher resistance levels. On the other hand, continued failure to overcome this obstacle may lead to increased selling pressure, pushing the price towards lower support areas.
Analysis of the recent price movement of DOGE
Analysis of Dogecoin’s recent price action reveals a major challenge facing the bulls. Despite the initial rebound, DOGE struggled to break through the resistance at the 4-hour simple moving average, which has become a crucial barrier.
This indicates that upward momentum is faltering, and market sentiment may be changing. Failure to clear this key level may indicate that further gains are unlikely without a consolidation phase or additional bullish catalysts.
The Relative Strength Index (RSI) also provides additional confirmation of the current downtrend as the RSI line continues to remain below the 50% threshold. The Relative Strength Index is widely used to evaluate market strength, and when it remains below 50%, it often indicates that selling pressure is prevailing over buying activity. This is in line with DOGE’s recent price action as the asset struggles to break through the key resistance level at the 4-hour simple moving average.
The failure of DOGE’s RSI to rise above the 50% mark indicates continued bearish forces, limiting the memecoin’s chances of sustaining the rally. As long as the RSI remains below 50%, downward pressure may continue, making it difficult for Dogecoin to break the resistance and possibly pushing the price towards lower support levels.
A bullish reversal requires the RSI to rise above 50%, indicating a shift in market sentiment. Currently, the bearish tone indicated by the RSI highlights the challenges DOGE faces in maintaining an upward trajectory.
Critical support and resistance levels to watch
For DOGE, key support and resistance levels provide vital insights into future price movements. Dogecon price is currently testing the $0.3066 support level, which could serve as a basis if the bearish momentum continues. If DOGE falls below this support, it could head towards $0.2677, reflecting more downside risks.
On the upside, if Dogecoin makes a positive turn and breaks above the 4-hour simple moving average, the immediate resistance to watch is $0.3563. Moreover, a successful breakout of this level could pave the way for further upward movement, with the next target being the $0.4 resistance area.
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