Dogecoin price analysis: DOGE drops 6 percent, support found at $0.06?
Dogecoin price analysis is bullish today as we have seen break lower past previous lows and over 6 percent lost over the past hours. Therefore, DOGE/USD looks to reverse and likely retest previous support and resistance.
Cryptocurrency heat map. Source: Coin360
The market has traded with strong selling pressure over the past 24 hours. The leader, Bitcoin, lost 7 percent, while Ethereum by 6.12 percent. Meanwhile, the rest of the market has closely followed the two majors.
Dogecoin price movement in the last 24 hours: Dogecoin breaks consolidation
DOGE/USD traded in a range of $0.06028 to $0.06413, indicating strong volatility over the last 24 hours. Trading volume has increased by 1.79 percent, totaling $408.6 million, while the total market cap trades around $8.045 billion, ranking the coin in 11th place overall.
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DOGE/USD 4-hour chart: DOGE looks to react from $0.06
The 4-hour chart shows a failure to move lower over the past hours, indicating that the $0.06 support could soon reverse the Dogecoin price action.
DOGE/USD 4-hour chart. Source: TradingView
Dogecoin price action has traded within consolidation over the past few days. After a strong several day rally last week, DOGE/USD retested previous major resistance at $0.065, however, it failed to move higher.
As a result, consolidation followed, with further attempts to move higher rejected over the past days. Additionally, support at $0.0625 was tested several times at the bottom of the consolidation area.
After further failure to continue higher, Dogecoin price saw a quick spike lower early in the afternoon, resulting in a clean pass below $0.0625 support. Eventually, support was found at $0.06, where low volatility price action is currently seen. From there, we expect DOGE/USD to start reversal and set another lower high.
Dogecoin price analysis: Conclusion
Dogecoin price analysis is bullish today as we have seen a quick drop towards the next major support at $0.06, which has stopped declining for now. Therefore, DOGE/USD is likely ready to reverse and move back towards previous support to retest it as resistance.
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