Dogecoin Price Analysis: DOGE Creeps Above $0.3 as Hope for Recovery Dwindles
- Dogecoin settles for consolidation after bowing to the seller concentration at the 200 SMA.
- The SuperTrend indicator's sell signal hints at a continuing downtrend.
- The transaction history model reveals immense resistance likely to curtail bullish efforts.
Dogecoin's bid for recovery carries on despite facing sideways forces and selling pressure. The push for gains above $0.33 earlier in the week aborted before the bulls brushed shoulders with the 200 Simple Moving Average (SMA).
On the downside, robust support at $0.3 keeps bears at bay while preventing the meme coin from nosediving toward $0.24. Therefore, DOGE is left dancing in a no-trade zone between $0.3 and $0.33.
Why Dogecoin struggle to gain ground is far from over
The 50 SMA limits the immediate upside on the four-hour chart. Perhaps if DOGE makes a four-hour close above this level, the up leg will extend to $0.33, where another delay is expected. Trading above this crucial zone may trigger more buy orders, but buyers must focus on gaining ground above the 200 SMA to validate the upswing toward $0.4.
DOGE/USD four-hour chart
The SuperTrend indicator has a bearish outlook, as observed on the four-hour chart. The sell signal implies that losses are bound to increase in the near term, especially if sellers heed the call. Realize that this technical tool is a chart overlay like the moving averages. However, it considers the asset's volatility to send precise buy and sell signals.
A call to sell occurs when the indicator closes the day above the asset's price and changes the color from green to red. On the other hand, a call to buy comes into the picture when the SuperTrend closes the day under the price and flips from red to green.
DOGE/USD four-hour chart
The same four-hour chart highlights a bearish signal from the Parabolic SAR. This tool functions almost in a similar manner as the SuperTrend. As the parabolas (dots) move above the price, traders are compelled to sell. On the other hand, traders will consider buying when the dots move above the price. The larger the distance between the dots, the stronger the prevailing trend.
An immense resistance lies at $0.31 to $0.32, according to the IOMAP model by IntoTheBlock. Here, around 136,000 addresses previously bought roughly 8.1 billion Doge. An increase in buying pressure is likely to diminish within this zone, thus delaying Dogecoin's recovery.
Dogecoin IOMAP chart
On the downside, support areas are not as robust as the resistance zones highlighted by the on-chain model. Nevertheless, the IOMAP directs our attention to the area between $0.3 and $0.31. Here, nearly 37,000 addresses previously purchased 2.3 billion DOGE. If sellers slice through this zone, Dogecoin will tumble toward $0.24 and $0.2 before another recovery mission ensues.