- The Dogecoin price has seen a slight decline today, aligning with the broader crypto market.
- This plunge is mainly driven by the Bitcoin price crash and rising selling pressure.
- Technical patterns indicate that DOGE is preparing for a rebound.
A reversal in the Dogecoin price may soon be on the horizon amid the ongoing crypto market slowdown. The memecoin recently experienced a dip, mainly because of the Bitcoin price crash.
Nevertheless, a few technical aspects are now coming into play in the Dogecoin price movement. This suggests that the DOGE price is preparing for a breakout.
Dogecoin Price Shows Signs of Reversal
According to CoinMarketCap data, the DOGE price is currently facing a short-term downtrend. This decline aligns with the broader crypto market slowdown. As of press time, the memecoin is trading at $0.0939, marking a marginal 0.8% decline in a day.
Despite a 0.9% monthly drop, the DOGE price DOGE-2.77%has seen a nearly 3% rise over the past week. This indicates that the current dip is short-term and the memecoin still holds its positive sentiment. This overall positive momentum is also seen in the trading activity, which has risen by an impressive 21% to hit $1.9 billion. Traders may be increasingly accumulating DOGE as they remain confident about its future.
Reiterating this positive sentiment, market experts like Trader Tardigrade are providing a bullish outlook. In a recent X post, the analyst posted an hourly chart of the Dogecoin price.
As per the expert, there are two divergences of the bullish type in Dogecoin’s performance. Such a situation is considered the first sign that the market is ready for a reversal soon. Basically, although the price keeps falling, forming a series of lower lows, it looks like the indicators are not following suit.
Such a divergence is viewed as an indicator of the weakening power of sellers. In other words, the bearish momentum starts fading, although the price has yet to show any changes. At the same time, it hints that buyers may be slowly stepping in at lower levels.
Looking ahead, the Dogecoin price is currently moving within a narrow range. If it manages to stay above the $0.092 level, there’s a chance to bounce back to $0.096. But if it slips below the support, the price could fall further toward $0.090.
Why is the DOGE Price Down Today?
Notably, the current dip in the Dogecoin price doesn’t seem to be caused by any specific news related to DOGE itself. Instead, it mostly follows the broader crypto market trend, especially the drop in Bitcoin.
Currently, the crypto market is in the red zone, plunging by 1.3% to $2.51 trillion. Bitcoin is leading this downtrend, trading at $74,389, with neatly 2% plummet. Other major tokens like Ethereum, XRP, and Solana are also in the line, posting notable losses. DOGE has also reflected this negative trend, trading in the red today.
This suggests that the Dogecoin price is still heavily influenced by the broader market. When BTC and the wider crypto market fall, DOGE tends to follow. However, the current drop is relatively mild. This shows that the coin is holding up better than some other assets during this pullback.
At the same time, trading activity has picked up. This indicates that more traders are active now. Since the price is falling alongside surging volume, it points to the possibility of increased selling pressure.
