Cryptocurrencies are in a weird position right now. Once can straight forward compare the crypto market situation with the sinking titanic when violin players were still playing music. The same is the condition of crypto holders who are expecting a reversal from current scenarios for multiplying their valuations.
The only person responsible for the rise of meme coins is Elon Musk, whose tweets were instrumental in driving investor sentiment in Dogecoin. People buying crypto in the last month are close to breaking down as the trend and sentiment at Dogecoin have turned blood red in the market. From the month high of $0.42 to the lows of $0.195, DOGE has dipped more than 50% in just June 2021.
Adding to negative sentiment is the Chinese crackdown on crypto exchanges, barring banks from doing business with institutions and cutting power supply to the mining companies. These situations are further adding huge pressure on the crypto market. The future might be bright, but the present seems to be dull enough to put people out of business.
DOGE Technical Analysis
Technical analysis on the price action and indications of mathematical indicators will clarify the present picture.
DOGE coin tried its best to revive its uptrend rally after the market correction and profit booking at the highs of $0.70. The starting of June felt like a good month, but everything turned south as the Chinese crackdown started hammering the crypto valuations. DOGE was respecting all the moving avengers, unlike some of the largest cryptocurrencies, leading to a strong belief in Dogecoins price action. But Since breaking the 100-day moving average with a large red candle on 21st June, DOGE seems to have suffered an irreparable loss.
DOGE is slowly closing towards the 200 days moving average, which is the last line of defense for this cryptocurrency. If it manages to breach the 200 DMA, the valuations could nosedive to year lows of $0.05. While such a case is highly unlikely, historical price action makes this level attainable after losing investor belief.
RSI is currently showing a level of 28.97 on the histogram, after the green candle off 22nd June. RSI shows a considerable fear and weakness in DOGE valuations. Still, there is a small headroom for investors to make an entry into Dogecoin for long-term holding.
Dogecoin has retracted by almost 15 % from its lows of 21st June. Currently, there is a rise in volume and buying action. The reversal confirms this indication in RSI histogram form oversold towards neutral zones. For smaller time frames, Dogecoin can retest the levels of $0.28 if a buying sentiment returns to this asset. Or else, we can witness a riches to rags scenario in the coming months. So check the Dogecoin price prediction report and predict the upcoming scenario of this currency before, and plan the investment strategy accordingly.
Disclaimer: Buying an asset in a falling market with hopes of making huge profits can be risky. It is wise to wait for some momentum and refrain from catching a falling knife asset. A falling knife is an asset that has been in red for a long duration, and people are buying at the levels with the intent of making huge profits if the asset retracts to it’s all-time highs.