Dogecoin Down by 15% in Two Days: Time to Book Profits?
Dogecoin made a decent high of $0.3517 on August 16, 2021, but the profit booking followed by the next day pushed it back to its support levels. This DOGE price movement back then was indicated as a profit booking opportunity. Such opportunistic price action demands restraint in terms of blind investments.
Considering the profit booking of the last two days, it has engulfed the consolidation and positive moves of the last five days, bringing Dogecoin back to its immediate support levels. The Dogecoin price action of the previous two months has been positive, and one should wait for clear indications before exiting their holdings.
Profit booking on Bitcoin creates a selling scenario on all other cryptocurrencies. While the market leader hasn’t fallen by a lot, Dogecoin has stumbled under the selling pressure. The entire supply of 131 billion Dogecoin is circulating in the market, and DOGE turned $1 could push it among the top three cryptocurrencies. As of now, Dogecoin ranks at number eight.
Dogecoin Price Analysis
Rallying has come to a halt with profit booking and consolidation on tables for the next leg of crypto run on the market.
When seen from a year-long valuation perspective, Dogecoin trades at a decent strength. Instead of a falling 200 DMA line, DOGE/USD has a climbing 200 DMA line. It indicates the fundamental strength and stronger price action on longer charts. Dogecoin has support at $0.2663 as immediate levels, followed by the 200 DMA line at $0.2386, while it faces a resistance zone between $0.3150 to $0.3320 levels.
Dogecoin has an RSI level dropping from overbought zones towards a lesser buying intensity zone. Coinciding the lower buying sentiment with increasing price action indicates a confusing movement. However, the lowering volumes as compared to the midweeks of August 2021, do indicate a holding pattern as volumes are barely hitting 100 million transactions.
Dogecoin has a distinctive profit booking pattern on charts as it falls with huge intensity. At first, there was some consolidation yesterday on hourly charts that indicate a slight buying opportunity in hopes of retracement and hitting a new high. But instead, the daybreak of September 07, 2021, brought with it stiff selling pressure with higher volumes of close to 27 million. There has been some consolidation again as per our Dogecoin predictions, but one shouldn’t consider this as a buying opportunity.
Dogecoin can instead repeat the falling movement trapping your investment for a longer duration. Consider $0.2600 as a strong buying level, but wait for a retracement on hourly charts and some signs of positiveness before entering into a new trade. RSI levels have dropped to weaker zones, technically called the oversold zones. Don’t hurry in buying the oversold showing price movement as daily charts are still mildly bullish.