While all the mammoth economies of the world have collapsed, the crypto market is on a ventilator too. It has been more than a week since Coronavirus pushed the majority of the markets off the cliff, and the disease is still not appearing to see any end.
In that case, even though some of the markets are trying to come out of the losses, it will be an overestimation if we think that there will no more price falls in the coming weeks. This implies that those who considered the recent price drops a buying opportunity can expect a few more dips below their buying prices.
Even Bitcoin, which felt the bearish hit severely below $4000 on March 13, had recovered above $6700 a couple of days ago, and despite that, the coin has again pulled back below $6000 recently. This shows that bears haven’t left the market space clearly, and altcoins (including Dogecoin) can still expect a few more bearish blows.
Dogecoin Price Analysis
Dogecoin started trading on a mildly positive note on March 1, but the first week itself saw bears coming in when it faced rejection at $0.0025. The coin kept gradually dropping till March 12, and then the next day, it sharply bottomed to $0.0013. After an initial rebound, Dogecoin price consolidated while holding no positive momentum.
Dogecoin is still below the 38.20% fib level till now except for a few spikes above it at $0.0019. Here, the moving averages are also confirming the current bearish nature of the coin while the MACD chart is on the negative zone with its MACD line on the downside.
In this chart, RSI is just above 50, showing a stable phase of the coin. Contradicting to other technicals, Dogecoin has formed a bullish trendline which may remain intact. The coin is below the 200-day EMA line, which notes a negative sign again, and the Bollinger bands are not heading towards a volatile zone as yet.
Dogecoin has spent the last two days with a few ups and downs, and that is why we cannot deny the possibility of further downside volatility. The coin has traced an impulse pattern over these days, and a few spikes above $0.0018 can also be spotted.
The coin has also traded below $0.00168 since March 21, and this shows signs of uncertainty for now. Here, the Bollinger bands have opened up a bit as compared to the monthly chart showing that short term volatility is still presumable for the coin.