Dogecoin bulls optimistic despite recent price decline
Dogecoin (CRYPTO:DOGE) has faced a significant decline in the past month, with its value dropping over 20% in 30 days.
This decrease has pushed DOGE's price below its 50-day simple moving average (SMA) and 20-day exponential moving average (EMA), signaling increased selling pressure and potential further downside in the short term.
On August 23, DOGE attempted to break above its 50-day SMA at $0.11 but encountered strong resistance, leading to a further drop below its 20-day EMA by the start of the following week.
These moving averages often act as resistance levels, making it challenging for DOGE to recover in the near term.
Despite the bearish trend, there are signs that the downtrend could be nearing its end.
The Chaikin Money Flow (CMF) indicator, which measures the buying and selling pressure of an asset, has shown an upward trend, crossing above the zero line.
Currently, DOGE's CMF stands at 0.04, suggesting that the selling pressure might be weakening, potentially paving the way for a rebound.
Additionally, DOGE's Moving Average Convergence Divergence (MACD) setup also points to a possible recovery.
The MACD line is currently above the signal line, indicating a bullish trend driven by buying momentum.
If the MACD line crosses above the center line, it could confirm this bullish trend, encouraging traders to take long positions.
While DOGE faces significant resistance and potential short-term challenges, these technical indicators provide a glimmer of hope for bullish investors anticipating a possible rebound in the near future.
At press time, the Dogecoin price was $0.09929.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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