Dogecoin price analysis: DOGE drops 6 percent, support found at $0.06?

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.

While waiting for Dogecoin to move further, see our articles on how to buy Litecoin, Filecoin, and Polkadot.

Disclaimer. The information provided is not trading advice. 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.

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